The time flies and technology evolves. The times, when selfhosted WordPress used to be the pinnacle of the Web 2.0 are gone. Not because WordPress is an inferiour platform, in fact WP is one of the most amazing publishing platforms out there. The problem is that by installing the WP on your own server, one is separating himelf from the socium. Tumblr, Posterous, LJ and WP host took over the hostig function and nobody minds having a third level domain with these guys. And why would they? I mean do we want to pretend, that we are a corporation with it's own beautiful domain? This is ridiculous. Good domains are few and not monetizing them is rather silly. Now, who is getting crazy cash for ther personal ramblings... exactly.
For today's consumer remembering the third level domain has become even simpler, since the rest everybody knows already xxx.tumblr.com or xxx.posterous.com. Connect to them with FB and there is nothing left to remember: it is all on our life's dashboard – the Facebook.
Having said all this, I am still doing the custom domain thing, simply because nobody wants to buy my domain and haven't come up with a good use for it yet.
Peace.
