I think that just about every serious podcaster has been disappointed with the progress of Odeo. At the time of their launch in 2005 just about everyone in podcasting had high hopes that Odeo would help to take podcasting to the next level. Alas, it didn't happen.

Odeo had a promising start but I've never really figured out what it was meant to do. It seems to be part directory, part social network, part podcast aggregator, part production tool and part free hosting provider. So while Odeo does a lot of things they don't do any one thing in an excellent manner. That would be fine if Odeo was two kids coding in their bedroom but this firm is backed by considerable VC moolah.

It was nice to read that Evan Williams, one of Odeo's founders, has come clean on the state of the company. I'm not going to read the post back to you but I will say that herein lies the risk in a top down approach to starting a web business. It's just way too easy to relax when you've got a pile of cash and no worries about where your next dollar is coming from.

Dave Winer says, "Odeo is over." He also says, "Basically podcasting was designed to sustain itself without tech companies, because the technology is so simple, by design, that it doesn’t need support from companies."

On the flip side, firms like LibSyn are generating revenue and creating tools that people can use to their great benefit.

There's still a long way to go and Odeo may yet become a powerhouse in podcasting. But their current state is living proof that VC dollars and a Silly-Con Valley address guarantee nothing with regards to the success of a technology firm.