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.

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

I agree w/ this. Be the best at one thing, not good at a bunch of things. And the design becomes easier if you’re doing one thing.