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.

Design matters deeply

However I don't think that every web3 product will have the same functionality. Currently the primary use case for web3 is various forms of speculation. 

There are other use cases that will look, feel, and be very different functionally and from a design POV