The idea is excellent, the fail is the lack of 'product'. They should distribute Wave modules that every wordpress or phpbb user can install on their blogs and hook into their own communities... and then Wave will take off.
To me, the big problem was indeed the lack of a product. I have tried Google Wave and I don't know what "product" they're talking about. It seemed to be an interesting technological experiment but I wouldn't be able to tell you what it's for, what problem it solves, or anything besides the fact that technologically, it was interesting.
In fact, I'm kind of surprised that they're killing it, because it felt like a first step with the technology part, with an upcoming second step where they would use said technology. I'm surprised that that was it. I would have expected Google to have plans beyond what Wave is today.
