Things that could have proliferated the internet in web 2.0 in no particular order:
Laptops and increased storage
Cheaper DSL lines
Better telecomm networks
Antisocial teenagers avoiding contact with parents and reaching out to friends through the internet
Social networks online starting with Friendster and proliferated by Facebook
All the free services that the internet offers to consumers
EBay
Stanford start-ups
Grandfather Semiconductor companies like National, Intel and Agilent--the foundation of Silicon Valley
Let's not forget that there used to be a ton of fruit farms and YOU PICK farms that are most likely replaced by business parks now
Laziness and procrastination: internet is entertainment
Outsourcing
Immigration of Indian and then Chinese software developers
Search engines like Google, Altavista, Yahoo! among others which made information more accessible
HTML: ability to have your own website in web 1.0 and then hating that it takes so long to create a website plus WYSIWYG free services made crappy websites so now log on to Facebook and you don't need to learn or write code
What else?
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