The problem with collaborative filtering is that there's a lot of magic going on that the user does not understand. Some users like to have more control over personalized recommendations and social networks can give them that control.
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That website has some great case studies available on recommender systems available for finding "music", "content", etc. I would much rather prefer that a computer do my work than myself. Web users have a terrible attention span so such a system would work to their benefit by eliminating the need to click-and-find content. For anyone interested, I expressed my ideas on collaborative filtering here: http://www.socialdegree.com/2007/01/15/interview-w-shuzakcom-founder-jawad-shuaib/