Indeed. Listen up all you MIT kids: do you want to be cooler than Mark Zuckerberg, or do you want to be cooler than John McCarthy, Tim Berners-Lee and Captain Crunch all rolled into one?
I have a team of capable engineers, and relationships with network/wifi hardware/firmware developers. What I don't have is $2-10M to spend designing open protocols (and building the software), especially with no obvious commercial upside.
No idea, but that doesn't mean it can't be done either non-profit-wise or even with significant upside, it's just your chances of VC-money and selling to a major corporation for fuck-you money are diminished relative to TechCrunch friendly buzzword related startups.
Non-profit might be the best way to go, here. I'm sure you can wrangle up enough in donations and FOSS contributions to make it work. The idea of an Internet free from political and legal malfeasance is one whose time has come, and enough people are realizing that fact that there should be sufficient collective energy to move a well-designed system forward.
As I understand it, typing in all-caps or just bashing your face into the keyboard is considered poor form around here, so instead I'll just calmly state that this information displeases me immensely, and evokes a not inconsiderably bitter sense of irony.
Twitter didn't buy Moxie Marlinspike. They bought one of his companies, which makes a variety of encrypted solutions for mobile phones. The Convergence project (which is an alternative to certificate authorities) remains independent of Whisper Systems.
To all the super-geniuses reading this: burn your socialmobilelocal startup to the ground tomorrow and do this instead.
Start by watching this Blackhat talk I linked elsewhere in the thread, the guy has the right kind of ideas: http://www.youtube.com/watch?v=Z7Wl2FW2TcA