I think it's perfectly normal to have so many startups nowadays, the cost of starting one has gone way down and it's a much better environment (but highly competitive) than late 90s to try out an idea. You can slap some code together or get it over the counter/plug&play and rent some cheap server power and you're good to go. The question is how many will be able to make money? US stats say 95% of them fail, but you could have 1% making some serious money, VCs/investors are not dumb to repeat late 90s mistake and they now gamble with smaller bets, pool money & collaborate alot.

You should go out and try out your idea. It's fun but hard work as I'm in middle of one, taking a break writing this :)