This chart says it all. A new study discovers that the vast majority of Facebook apps are an utter waste of time. But oh yeah — Facebook is worth $9 billion, or $15 billion. And Slide is worth half a billion because it makes that super important FunWall application. Um, right. Kids, let’s face it. Facebook is Webkinz for adults. Facebook is a Ponzi scheme. A handful of VCs have created the illusion of an actual market by funding apps companies and then doing deals with each other — passing cash back and forth among to make it look as if money is being made.

What really freaks me out is that when you mention this to the VCs, they say, “So what? What’s wrong with that?” I used to think they were being coy. But I’ve come to believe that they actually don’t know what’s wrong with that. Worse yet, they all give me this sad look, like I’m some crazy old uncle at Thanksgiving dinner who just doesn’t “get” the whole Web 2.0 thing.

Sigh. Maybe they’re right. I guess I’m getting old. But I really miss the days when people in the Valley made actual products.