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There's no doubt in my mind that Justin.tv has benefitted Ustream tremendously.
I don't see the cool thing about UStream. I hate seeing people sit in front of their computer with a web cam. Justin actually goes outside and does things.

I think Justin.tv's problem is the scaling. The cutting out isn't too bad, but once they hit 400 viewers it starts to becoming a pain to watch.

Good points, however I think once the novelty of justin.tv wears of, viewers will stray. That already seems to be happening.

But that's OK for justin - because their business model is to sell this solution to others, and they've already proved it works.

On the other hand, Upstream is more of a social network type site that takes facebook stalking to a new level. I envision people using it to keep tabs on what their friends are up to. Who knows if it'll work, though.