Few Thoughts I Shared Elsewhere ...
The Truth Behind Indian Broadband:
The problems you owed to the PC and the iPod example looks a bit funny. Its like comparing Electricity delivered to your home and battery on your cellphone. Electricity can do many things for many of us while cellphone just does one special thing, power the phone. Does Electricity's genericness, flexibility and non-portableness makes it any inefficient and useless than a battery?
To the point of flexible frameworks, What we must build is a platform that is agile and "flexible to adapt to any future requirements" than specially customized to current requirements.
In simple words, build frameworks and Engines. Not monolithic platforms. Blogging platforms are an excellent example. As they built engines and templates, customization and specialization became so easy. Even the evolution to the new markets is just a jiffy.
Many are tempted by specialized market segments to build a very specialized product/platform, for whatever reasons.
Most lively example, at any given day atleast one new social networking website is started that focus on a very narrow group of people.
And what inspired them to start a social networking website in the first place? Probably a myspace, a generic social networking site that caters to everybody on the web. Does this virute of 'generic and caters to all' make myspace any inefficient?
Scared of failure to differentiate is forcing some entrepreneurs to choose narrow and specialized segments, leaving the most profitable but highly competitive and broader market segments. This is all assuming that they can make money in a narrow sector with less or no competition.
Missing the whole business 101.
If there is MONEY in whatever segment you choose, there WILL BE a competition sooner than one can think of. You can't escape competition. If you must, then you are escaping money too. There is no money making business that doesn't have competition.
"Apparently more than 90% of internet traffic lands up in the US. Partly because, all the DNS servers are sitting there and no matter what, the address resolution happens there in the US."
- I am sorry. I don't quite what you are saying.
How does DNS resolution has something to do with international bandwidth consumption? 99% of time, DNS query from India never crosses the border, owing to DNS Caching, at every level in the path. Something seriously wrong with DNS Servers configured at ISPs, if they ever hit more than 1% of time.
As per my understanding, all major sites have localized servers. You might run a traceroute to see if what ISPs are saying is accurate.