every web3 product will eventually have the same set of features—social feeds, minting interfaces, marketplaces, wallets, and whatever the trending behavior becomes.

so, if they're not competing on features, how will they compete?

design.

what better way to form a differentiated relationship than great ux

That premise makes sense but it kind of sounds like a nightmare 

Would be much better if each web3 product specialized in a single thing

Do you think network effects will still matter in web3? (Since this is obtained not only through product but also through gtm+timing)

So we’re back to building everything apps again? 👀

I'd rather see tightly focused experiences from opinionated products that know what they excel at and why they want to excel at that. to me that's where delight and stickiness come from, are.na is an example that comes to mind

Are you including protocol design? I think that will make the feature sets genuinely different even if they seem similar on the surface (like an app-layer replay of how layer 1 has evolved).