By Surrendering, Diaspora Might Still Beat Facebook
That's no indictment of anything other than their experience level, but it's a reality nonetheless.
Here is my suggestion for how they can still hit a home run.
Step 1: Identify the best existing team or project other than Diaspora that is working on solving the same problem.
Step 2: Approach the team with a proposal.
Step 3: Transfer the balance of the $200k along with the diaspora* name and brand.
Step 4: Public relations. "In summary, this is the best way for us to honor your donation--to take our initiative and our vision along with your support, interest, and donations and marry those to something with technical maturity, sophistication, and experience.
"That's why diaspora* and (insert other project) are now one.
"For us, nothing has changed in the initial vision apart from our awareness of our limitations. The goals are the same, the enthusiasm is the same, and now, the chances of success are far better than they were when we began.
More to come soon."
As I see it, Diaspora has media attention, community attention, idealogical support from many savvy people, and a substantial pile of cash. In my opinion, they've also got someone on their team with a really good mind for branding and PR.
They are lacking experience, technical skill, and a solid existing project.
Other teams have the opposite problems, I imagine. If there's a quality candidate in the bunch of competitors, $200,000 and the momentum around the Diaspora name might be enough to catalyze a critical level of adoption.
A merging seems like it might be a winning idea, but it would depend on the Diaspora guys being willing to be incredibly self-effacing and impressively true to the idealogical principles that they set out with.