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True, but if they are smart (which they don't seem to have enough of), then they can turn it into a business.
I'm sure people were saying the same things about Facebook, Twitter, Instagram, Pinterest, etc...
Facebook, Twitter, and the sort hold on to content in perpetuity and content is monetizable. In this case, other than a network of friends who would be embarrassed with you, what is left of Snapchat after the first "My stuff wasn't really deleted" scandal? An "I have all of your dirty photos service"? Could their users just jump onto another "delete everything" app?
A lot of people don't seem to get Snapchat, so I wrote a blog post about it here: http://www.brianchu.com/blog/2013/09/11/photo-embarrassment/.

Have people actually met/seen others using Snapchat? I'm in college so tons of my friends use Snapchat regularly (about every couple of hours). Snapchat is essentially used for picture messaging of frivolous images, almost like a picture-status-update of something funny or current. Nobody I know really uses it for "dirty" pics, though unflattering pics (of yourself or others) are fairly common. It's almost a foil to Instagram - Instagram encourages you to post by making your photos permanent but beautiful; Snapchat encourages you to post by making your funny/ridiculous/unflattering photos ephemeral. See the difference? It's ephemeral vs permanent, funny/ridiculous vs beautiful.

I found your blog post insightful. Consider submitting it as a story on HN.

Has any of your friends run into the problem of the expected privacy of their photos being compromised and the photos reposted elsewhere?

As much as I'd like to agree, Twitter is about to IPO. So empirical real-world data suggests otherwise, that it's not a fad, and just because I don't get it doesn't mean that others don't derive enough value from it to be a business.

Boy, being an investor must be hard.

SnapChat's success is a huge reminder to start by making something people want. Ever since watching Mr. Gadget, the idea of self-destructing messages seemed useful not just for cartoon spies, but for so many ordinary reasons.

I'm not a user of snapchat, but to my college age cousins, the value isn't in "sexting", though that happens, it's in the intimate, momentary connection.

This is the same reason, for aesthetic reasons, why I prefer not to take pictures of famous buildings & landscapes. I know I was there .. it's imprinted in my mind and I can go back and explore that experience with my imagination. I don't only visualize, but I smell, I hear, I feel what it was like.

Snapchat captures that zeitgeist, whether the experiences was funny, intimate, sexy, embarrassing, cool, awe-inspiring or sad. It then goes into history, save the shared mindspace of 2.

That's something people want.