Well as all things, 90% of everthing (according to Sturgens law) sucks.  The same is true for Web 2.0... Most of the applications are just signal over noise. Their creators see them as useful to themselfs, but in most cases they make apps that are either too complex or do not have the features you need. I do think you should try looking under the surface of some of these apps because the more powerful features are under the surface, and they can help any web savvy user get more work done. The web-appish  sites I do use frequently are:
Del.icio.us - I have all of my bookmarks there, I can easily bookmark and tag invidual articles by context. I share my bookmarks with a few of my collegues and we use each other resources effectively. Also, I have my bookmarks backed up locally...
Cork'd - If you like wine, this can be a great resource to discover new wines, talk with fellow wine lovers, and for the most part have a nice list of your own wines as well as a wishlist.
Flickr - I do have a dedicated server, but Flickr just seems so much better in that regard, I use it as a kind of backup and gallery all in one. The pro version costs 25$ a year (no bandwidth or space limit, the only limit is 2GB upload per month) and it very cost effective. Also, a lot of people I know use it and I can subcribe to their feeds and so on. I can install a web gallery, but why bother?
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