It looks like the local market is heating up even more, with MSNBC.com announcing the acquisition of Chicago-based EveryBlock.

MSNBC.com–a joint venture of Microsoft (MSFT) and GE (GE) unit NBC Universal–paid several million dollars for the “hyper-local” information site, which is up and running in 15 cities, including New York, San Francisco, Seattle, Chicago and Boston, sources said.

In June, Time Warner (TWX) online unit AOL paid about $10 million to buy Patch Media.

The New York-based start-up is a platform that does deeply localized coverage of communities on a range of topics, from announcements to news to events to obituaries. It is aimed at competing with local newspapers and other media.

EveryBlock takes a slightly different approach, scouring a mass of publicly available data in a variety of U.S. cities from a variety of public records–such as crime stats, building permits and restaurant inspections–and reassembling them into more comprehensible and geographically relevant news feeds, depending on what a user asks for.

It also pulls up related Flickr photos and information from Web sites like Yelp and Daily Candy and can get very granular, down to keeping track of what is happening on your block or neighborhood.

Maps are also deeply integrated into EveryBlock, as it was on an earlier effort–ChicagoCrime.org–of founder Adrian Holovaty.

The innovative little start-up has a tiny staff of a half-dozen, still calls itself a “project” on its Web site and was started with $1.1 million in grant money won from the Knight News Challenge, an annual contest held by the Knight Foundation.

MSNBC.com is the news channel for Microsoft’s MSN portal, whose execs are very interested in weaving more local results into the site, as well as into the software giant’s new search offering, Bing.

The aim of having EveryBlock data integrated, for example, would be to create a local information dashboard on MSN.

Here’s a screen grab of EveryBlock’s take on my zip code in San Francisco, below (click on the image to make it larger)–and a video interview with Holovaty on YoChicago in early 2008:

Microsoft officially rolled out the next version of its Windows Live Services tonight, with a heavy emphasis on socializing its online offerings and giving users better tools to share all sorts of information from across the Web within them.

Microsoft (MSFT) said the changes–similar to those made by Yahoo (YHOO) and Time Warner (TWX) online unit AOL recently–would “begin rolling out to customers in the U.S. over the coming weeks and will be made available globally in 54 countries and in 48 languages by early 2009.”

You might call its the “Facebooking” of Windows Live, which is the brand name for Microsoft’s communications and other related online services aimed at consumers, especially because the much anticipated changes also include a new profile and a “What’s New” feed.

So, if imitation is the most sincere form of flattery, Facebook CEO Mark Zuckerberg should feel beloved by Microsoft, since both are direct borrows of two of the social-networking site’s most prominent features.

(See many screenshots of the newly refreshed Window Live services below.)

But don’t call it a social network, said Brian Hall, who is the general manager of the Windows Live unit, in a lovely breakfast interview with BoomTown yesterday.

“No one wants to sign up for another social network,” said Hall. “But everyone does want to be able to share and bring together all they do on the Web, and we want to make sure all our users can do that in the easiest way possible.”

(Sadly, the video I did with Hall–who is Seth Rogen lookalike, and I mean that in a good way–got eaten up in my new Flip MinoHD software, which was entirely due to my boneheadedness.)

But, in it, Hall underscored that Microsoft is now fully committed to opening Windows Live Services up to whatever consumers want to do with their online lives and wherever they want to do it.

And, indeed, the “next generation” of Windows Live will inject social elements into its Photo Gallery photo sharing, Hotmail email, Spaces groups and Messenger instant messaging offerings, as well as Microsoft’s calendar and mobile products.

The move will also more significantly integrate many third-party partners into the mix. Microsoft’s outside partners announced tonight include Flickr, LinkedIn, Pandora, Photobucket, Twitter, WordPress and Yelp. (See the full list below.)

Microsoft also announced alliances with Hewlett-Packard (HPQ) and China Telecom to deliver Windows Live services.

Microsoft says there are more than 460 million Windows Live customers (its instant messaging offering accounts for a bulk of this number and will see the most socializing impact), but is bowing to the obvious and inevitable trend of consumers creating and sharing all over the Internet.

But, said Hall, Microsoft is also sticking to its mantra of “software plus services” here, noting that consumers want the existing tools they use now regularly to become more social, rather than having to abandon them.

Microsoft is also launching its Windows Live Essentials, which are free widgets that can be used across a range of devices and places, such as personal computers, mobile phones and on Web sites.

Finally, to let users store all that content and information, Microsoft said it is also increasing its Windows Live SkyDrive online storage offering from 5GB to 25GB.

Here are the screenshots of the new Windows Live services (click on them to make them larger):

Windows Live Home Page

Windows Live Profile Page

Windows Live Messenger Page

Windows Live Web Activities Page

Windows Live Groups Page

Partner Integration for Windows Live

Blog
Blogkoll.se
Live Journal
Overblog
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Twitter*
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Reviews
11870.com
Amazon
Digg
Flixster*
Goodreads
Kaboodle
StumbleUpon*
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Photo
Bilddagboken.se
Flickr*
Photobucket
Rock You
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Music/Video
Last.fm
iLike
Break
Pandora
Seesmic
Veoh

Social Networking
Biip.no
Dada.net
Daum*
Dopplr
Faves
Friendster
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Libero Community
Lokalisten
Mail.ru
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Studenti.it
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Yandex
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OEM and Services Partners
HP
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Telecommunications and Broadband Service Providers

China Telecom
Qwest

FrameIt Partners
Amlogic
iGala
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PhotoVu
RMI
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*Denotes First Set of Available Feed Partners

Former Facebook exec Owen Van Natta will take the CEO job at a music discovery site called Playlist, a move that had been speculated last week, after he did not end up taking another position as head of MySpace Music.

Van Natta’s arrival at Playlist was not the only news for the Palo Alto, Calif.-based start-up–former AOL exec Bob Pittman’s Pilot Investment Group is also investing an undisclosed amount of money in Playlist. Pittman will also join its board.

Playlist has previously raised several million dollars, said sources, but the new funding is many times that, to total about $18 to $20 million.

The move to Playlist is an interesting one for Van Natta, who has looked at a number of jobs since leaving the high-profile social-networking site earlier this year.

He has talked to a wide range of companies, sources said, including Microsoft (MSFT) and a range of start-ups, as well as with MySpace, which is owned by News Corp. (NWS). (News Corp. also owns this site).

Those talks between Van Natta and MySpace to run its new music initiative did not pan out for a variety of reasons.

But he has long expressed a desire to become a CEO of a company, rather than just head to another executive job within a larger company, so the move to run a start-up is not a surprise.

In an interview this afternoon, Van Natta told me he got very intrigued by the possibilities at Project Playlist, which was the first iteration of the start-up and in which he is an investor, due to its viral growth.

And, indeed, Playlist has grown quickly to become one of the larger music communities on the Web, claiming that more than 38 million music fans monthly, sharing playlists via its Web site and also widely distributed embeddable widgets. The site has tens of millions of daily page views, according to surveys.

To get to those big-scale numbers, Playlist essentially has offered users a giant linking service for music, not unlike Google (GOOG) with all information, pointing users to promotional, free and sometimes illegal music and music video tracks all over the Web.

Those links to illegal music have resulted in a lawsuit aimed at Playlist from the music industry, sources said, a sadly typical experience of many online music services.

The usual tactic for the music giants: Sue first and shake down later.

Under Van Natta, I would guess, Playlist is likely to reach out to music companies and strike deals.

The company also needs to settle on its main business plan, which appears to me to have been less important than its explosive growth.

Playlist currently does have some small amount of advertising on the site, and seems to be making most of its scratch from sending leads to ringtone sellers.

Van Natta did not want to reveal specific strategies for Playlist going forward, only noting the opportunity is large.

“Discovery around music is exploding on the Internet,” said Van Natta. “And the company that does the best job of taking advantage of that is really going to be huge.”

That said, there have been a lot of music-aimed efforts like Playlist in the music space, with a lot of different business plans and varying degrees of success, ranging from the Apple (AAPL) behemoth iTunes site, which sells single songs, to the CBS (CBS) music service, Last.fm, which relies more on advertising revenues.

Other contenders in the space include the Rhapsody subscription service from RealNetworks (RNWK), music discovery service iLike and many others. MySpace has also waded deeply into the music space, and Facebook is also reportedly weighing its own service.

Van Natta was one of Facebook’s earliest and most prominent execs, serving in jobs like COO and also Chief Revenue Officer while there.

He came to Facebook in the fall of 2005, after a stint as VP of Worldwide Business and Corporate Development at Amazon, and was part of the founding team of A9, the Amazon search company.

“I am excited to be building a company again,” said Van Natta, who has taken many months off since he left Facebook in February.

Someone get a dose of Ritalin stat to the noisy but deeply misguided critics who took news of the huge number of downloads of apps for the Apple (AAPL) iPhone and immediately concluded it was just not good enough.

Thus, as reported today in The Wall Street Journal, 60 million downloads in 30 days–mostly for free apps, but with about $30 million in revenue, and a runway of three million more new iPhones out there too–is a chance to talk about how it all is just so unexciting and how the apps market is officially saturated?

Am I missing something here? One would assume that were these pundits pioneers, they would get to Ohio and declare that the going farther west held very little promise, thank you very much!

Wrote TechCrunch’s Erick Schonfeld:

The question is how many apps can one person really manage before becoming overwhelmed. While the initial impulse is to download as many apps as possible to try them out, there is a limit to how many apps you can juggle on your iPhone. It is not much different than a PC. You have tons of apps, but how many do you actually use on a regular basis? For most people, that number is probably no more than ten apps, and on a daily basis, maybe three or four, tops.”

Yes, that personal computer thing has been such a disappointment for us all and a real failure in spurring the creation of a plethora of multi-billion-dollar software makers, hasn’t it?

In actuality, while there is obviously going to be an initial period of frantic trying-out of apps and a fall-off of regular usage, the entire point is that a useful and important platform is being developed here.

Stlll, GigaOm’s Om Malik talked to new iPhone analytics company Pinch Media and managed to find lemons in the lemonade:

Using the caveat that only a few app makers were using the Pinch Analytics library, [Pinch's Founder Greg Yardley] pointed out that as per their data, the ratio of free downloads to paid downloads is at least 10 to 1. He also said that the pace of downloads is slowing, which is expected because the early rush is behind us. According to data collected by Pinch Media, on average, less than 20 percent of an application’s overall unique users return to an application each day. Yardley also pointed out that people are using the apps for just under five minutes at a time, on average. The majority only use the applications once per day; the average number of uses per day is around 1.2.

Looks like I am not the only one who is getting bored with some of the more blah apps. Phew!”

Of course, Malik and others will not like each and every app, but that is not exactly a surprise; nor should it be the focus.

As Apple CEO Steve Jobs correctly noted to The Journal:

“Phone differentiation used to be about radios and antennas and things like that. We think, going forward, the phone of the future will be differentiated by software.”

Exactly. This is less about the iPhone, than it is about all mobile phones, going forward.

But, because of the iPhone’s trailblazing, they will be easier to use, because of apps and multi-touch and a much richer multimedia experience.

That market will thus require a lot of apps, some of which will work and some of which will flop.

As I wrote about the popularity of the third-party apps and Apple’s iTunes App Store:

That’s because Apple has built a platform for adults.

Like many, I have downloaded dozens of iPhone third-party apps over the last several days.

And, unlike what one can discover on the other hot apps platform–namely Facebook–they are uniformly superb, lovely, useful and fun in a really nonjuvenile way. …

I think you would not say so after looking over a lot of what is available at the App Store on iTunes.

Lots and lots of the apps there are games, of course, which are the most popular.

But what amazingly clever games, like MotionX Poker with the delightful rolling dice, or the humming swish of PhoneSaber (totally silly, but in a profound manner that Vampire-biting on Facebook will never achieve).

And the list of useful stuff–Pandora Radio, Starmap, WeatherBug, Evernote and WHERE–is long and growing longer, and these seem to enjoy as much prominence and popularity as the sillier stuff.

In addition, the ability to truly use other Web services in a mobile setting–from Photobucket to Yelp to AIM to the New York Times–makes the iPhone an even more useful device to me.

And for each of the apps I can also imagine various monetization schemes that now make a lot more sense since the iPhone platform enhances them with mobility and simplicity.”

Or, as the cliché goes: “The Plains are covered with the bodies of pioneers.”

But some of them, of course, made it to California.

The rest, as they also say, is history.

Speaking of which, here is a video of AllThingsD.com’s Co-Executive Editor Walt Mossberg discussing the iPhone’s significance at the Aspen Ideas Festival in July, in a short snippet from his talk there:

It’s a lot of weight to put on the slim shoulders of Apple (AAPL), even though the company has shifted in recent years–largely due to the iPod and now iPhone phenomena–from a maker of devices for the elite to a mass consumer icon and a major influencer of key technology trends.

And, as has been much written about, Apple’s iPhone has brought the vision of a touchscreen minicomputer-on-the-go to the kind of reality that seemed impossible only a few years ago.

But more important to me is what is happening with the plethora of third-party apps now available from the iTunes App Store–both free and paid (picture below)–for use on the iPhone platform.

That’s because Apple has built a platform for adults.

Like many, I have downloaded dozens of iPhone third-party apps over the last several days.

And–unlike what one can discover on the other hot apps platform–namely Facebook–they are uniformly superb, lovely, useful and fun in a really nonjuvenile way.

The iPhone Facebook app is, by the way, stellar.

It’s more than a little ironic, then, that about a year ago it was the social-networking site that reinvigorated the idea of the importance of having a platform that a multitude of developers could thrive on.

It’s not exactly a new idea–Microsoft has nourished an ecosystem of developers for its powerful Windows software platform for, like, forever.

But Facebook surely made the idea bigger, looser, wilder and more exciting. Except that a lot of what has been created for Facebook has been profoundly stupid.

Last year, Boomtown set off a mini-tornado of debate when I suggested that I was less than impressed by the quality and endurance of most of the new Facebook apps–also called widgets–that began to take off.

In a post called: “The Children’s Hour: Facebook Apps Are for Toddlers (There, We Said It),” I wrote:

I get it, I get it. Millions upon millions of people are downloading and using these apps, part of a very clever ecosystem [Facebook CEO Mark] Zuckerberg unleashed in late May.

Under the scheme, widget-makers got to go wild on Facebook, and Facebook got to offload a chunk of its feature development onto others.

‘Until now, social networks have been closed platforms,’ said Zuckerberg at the [f8] event, calling on outside developers to integrate their applications into the service. ‘Today, we’re going to end that.’

But so far, as popular as those apps have become, what Zuckerberg and the widget-makers have wrought is mostly silly, useless and time-wasting, and the kazillion users of these widgets are pretty much just acting like little children.

I never thought I would call the often frivolous AOL back in the day–very simply, a Neanderthal version of Facebook–a mature offering in comparison.

While I will admit when I am not chewing nails that a lot of these apps are somewhat fun, I can’t help but ask myself that lyric from the old Peggy Lee classic: ‘Is that all there is?’

And if that is all there is, can Facebook really build a viable and long-lasting business on what is essentially a bunch of games that will ultimately become wearying for users? Doesn’t it need more robust apps that actually are useful and relevant and make Facebook the service that Zuckerberg has often told me was a ‘utility’?

While Facebook–with a cleaner and more strict look and a better navigation–is surely less goofy than rival MySpace for anyone over 12 years old, and its video, photo and email features are nice, the vast majority of its apps are still mostly as dumb as a box of hammers.”

Too harsh?

I think you would not say so after looking over a lot of what is available at the App Store on iTunes.

Lots and lots of the apps there are games, of course, which are the most popular.

But what amazingly clever games, like MotionX Poker with the delightful rolling dice, or the humming swish of PhoneSaber (totally silly, but in a profound manner that Vampire-biting on Facebook will never achieve).

And the list of useful stuff–Pandora Radio, Starmap, WeatherBug, Evernote and WHERE (pictured here)–is long and growing longer, and these seem to enjoy as much prominence and popularity as the sillier stuff.

In addition, the ability to truly use other Web services in a mobile setting–from Photobucket to Yelp to AIM to the New York Times–makes the iPhone an even more useful device to me.

And for each of the apps I can also imagine various monetization schemes that now make a lot more sense since the iPhone platform enhances them with mobility and simplicity (Carling’s branded iPint is very smart, for example).

I also get the feeling that, knowing they would otherwise not be granted entrance into the elegant kingdom of Steve Jobs, developers tried to design their apps just a little more perfectly.

I cannot say the same about adding widgets to Facebook, which only seem to put more burden on my experience there.

Some are great and some are truly awful, but you never know exactly what you are getting until you go through the typically onerous addition process.

That will soon change with the new Facebook redesign.

I do have great hopes for it, as it gets rolled out this week for users, because it looks like it will make the service much easier to manage and enjoy.

I hope so, because right now, Facebook feels too much like a garden in constant need of weeding.

Perhaps this is because these apps or widgets are more useful in a mobile setting, when you are truly looking for a wide range of discrete pieces of information, rather than on a large screen–which gets larger all the time–at home when the browsing experience lets you handle more information coming at you from all over.

I don’t know, but I do know that I have gotten more use out of my iPhone apps than any Facebook app so far, making me more productive and happy in the process.

Yes, the BubbleWrap app is pointless, but it did give me a few minutes to decompress and read the newspaper as my six-year-old son digitally popped away in glee this weekend.

You know what I mean–it’s called adult time.

Project Granola?

Apparently, that’s the jokey nickname that’s been given by some in the company to Microsoft’s (MSFT) new online strategy, in the wake of its failed efforts to acquire Yahoo (YHOO) that ended in a big heap of mess this past weekend.

Now, sources tell BoomTown, it is all about “organic”–hence the image of a healthy handful of granola (except for the fact that, in my experience, nobody really likes granola after eating it as much as they think will before).

In any case, it is a word Microsoft folks have been slipping into the conversations with BoomTown over the past few days, so much so that I have started to feel like I was talking to execs from Whole Foods.

Now Microsoft’s greenness has gone public.

Case in point: Brian Hall, Windows Live General Manager, who trotted out the organic word in front of Merrill Lynch analysts yesterday, as reported by CNET’s Ina Fried, saying: “We’ve withdrawn the offer and moved on, and now are focused on how we grow as fast as possible organically.”

But what does organic mean exactly?

Two things, it seems.

First, stepping up spending on marketing, technology and research to try to find ways to differentiate from Google (GOOG) and get into the No. 2 spot now held by Yahoo.

Of course, that plan has not worked out so well as yet for the software giant, with Microsoft spending billions of dollars with no profits and little gain in online search or ad market share, while its archrival Google keeps growing stronger.

Even so, while in Korea today, Microsoft Chairman Bill Gates backed Microsoft CEO Steve Ballmer’s do-it-yourself path and his move to walk away from Yahoo.

“The key decisions on that will be made by Microsoft CEO Steve Ballmer, who took a look at Yahoo and decided that, on our own, he likes the stuff that we’re doing,” said Gates.

Gates also added what amounts to the second option for Microsoft. “I wouldn’t rule out some partnerships, but we don’t have anything imminent there,” he said.

While a return to Yahoo is a possibility, in fact, buying up Web 2.0 stars is likely to be a bigger focus of the company.

“Yahoo can twist,” said one source. “Microsoft has lots and lots of other options.”

According to sources close to the company, for example, Microsoft’s bankers had been putting out subtle signals to Facebook to see if it would be open to a full buyout.

Microsoft already invested $240 million in the hot social-networking site, an investment that gave Facebook its kooky $15 billion valuation.

And its execs have long told Facebook execs they wouldn’t mind a bigger bite–um, like all of it.

“We just wanted to gauge their interest, more than any real effort,” said another source, who expects Facebook to stick to its longish path to an eventual IPO.

But, as is no secret, Microsoft has selections all over Silicon Valley to help it improve its Internet chances.

Those would include buying bigger vertical sites in strong categories like autos or jobs or finance, and also scooping up smaller but fast-growing socially oriented sites like Digg, Meebo, Yelp or focusing on ad plays like Spot Runner (which just got another big dollop of funding).

There might even be some sense in spinning some of these and all Microsoft Web units off into a separate Internet company, which would be another way of integrating even bigger deals for properties like Time Warner’s (TWX) AOL or News Corp.’s (NWS) MySpace (which are longer shots, I think).

In a post I did in February right after Yahoo rebuffed Microsoft for the first time, I suggested such a course for the company.

As I wrote:

Here’s a list: LinkedIn. Digg. Flixster. Slide or RockYou. Veoh. WordPress. Sphere. Sugar. Some international stuff. And more.

Then, some noted, Microsoft would have to give massive financial incentives to those entrepreneurs to stay and thrive. Most importantly, it would have to keep its Redmond hands from interfering.

Now that would send shivers up the spine of Larry and Sergey.”

And that, most of all, would be more like icing on the cake for Microsoft and be much more tasty than a bowl full of granola.

And, as Martha Stewart says: It’s a good thing.

In fact, we’re hopping mad all over again after a talk we had last week with a very smart exec at a company that Facebook does a lot of business with, who posited the right way the social-networking phenomenon could have rolled out the now radioactive ad system.

It did not have to be that way, as the exec I was talking to noted, if Facebook had first launched the Beacon service–which can track your purchases on some external sites and send the information back to your Facebook profile’s news feed–as a noncommercial tool for users, focusing on things they had posted on a range of external Web sites that they actually might like being broadcast back to friends at Facebook.

Specifically, that could mean popular sharing sites like Flickr, YouTube, Yelp, Craigslist and Twitter, or any place where people like to and–more importantly–intend to share. Finding an easy way to let friends know what you are posting on the Web, as anyone knows, is still not very easy at all to do.

Thus, Facebook would have provided a valuable service if it had just tweaked Beacon to be actually helpful, rather than actually stalkerish.

So why did Facebook focus the service on ads first?

Well, to my mind, there were 15 billion reasons.

In other words, Facebook had to and has to desperately find some sort of magic advertising pill to sell to somehow backfill its spectacularly impossible $15 billion valuation, a financing whose pressure to perform is clearly at the rotten core of the Beacon program.

So a successful Beacon meant a successful Facebook, even if it was not such a successful idea to help consumers.

During a discussion of the mess, the exec noted correctly that the real problem lay in the fact that there has never been a true value proposition offered to Facebook users for tolerating Beacon.

In fact, the value accrued only to Facebook and to the advertiser or retailer, who might get new sales. Advertisers’ reasons for Beaconing are obvious–there is a benefit to this kind of deep relationship-targeting, or there surely will be over time.

After much noise over Beacon, Facebook did back down, trying to assuage those critics by giving users more control over the data with a global opt-out option for users.

That still has raised a lot of questions about security and privacy of data that still could be transmitted.

And it also did not put the onus on Facebook to remove its opt-out system and try to design something users would want to opt-in to.

Opting in, of course, is at the heart of Facebook’s third-party universe of widgets, which users can pick and choose from without being forced to.

It would be nice then, if Facebook would extend those same rights to its audience that it does when it is happily serving up SuperPokes and Vampire Bites.