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I’ve been thinking about this a lot the past few days. So much untapped potential =/. Could a better system get off the ground by enabling people to share annotations on blog posts (open ecosystem) instead of books (closed)? Surely something like this has been attempted....
I guess Google Reader took a stab at this, but even they were dropping the ball relative to what the two of you are hinting at here.
I also suspect that the tech savvy, non-fiction readers market is tiny, relatively speaking. Unfortunately the only avenue to implement something like this might be Kindle
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