I think you just summed up why no one's been able to kill off craigslist. CL kept it simple, stuck to what they did best and hardly added any features.
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And restricted access to their data + cease-and-desisted anyone who wanted to augment the CL experience. They're still in business because they are shrewd and have the critical mass required to maintain their monopoly, not because they have a killer product.
I find it hard to find fault anyone who resists 3rd parties attempting to Embrace and Extend ("augment") their product. It is pretty obvious to me that getting disintermediated from your users lowers the value you offer & makes you a disposable part of the stack: as soon as the 'augmenters' become popular enough, they'd replace CL with a home-grown solution