Check out Lessons learned from Weblogs.com fiasco that I wrote on the NMC 2004 Decentralist blog.

A postscript to that piece: Having read the roughly 150 comments and listened to Dave's audio blog AND having met Dave and recently had some glitches with the free blogs that I hosted going down due a domain name that I didn't control expiring, it is clear to me that Dave's heart is in the right place and that, other than NOT posting a brief heads up about weblogs.com going down on the web somewhere, Dave has done the right thing.