I was blown away by the release of the beta even though half of the whole suite didn't work. ;)

I'm very impressed with the idea and concept of using FaceBook connect. I myself was thinking of spending a considerable amount of time implanting this feature myself. Overall, the package looks good however I'm surprised to see that the package (unless I've overlooked something) doesn't contain features that allow users to grow their own network.

Let me clarify.
On MySpace or FaceBook across them see more both are features such as bulletins, status updates all though you have support status updates in D7 it's not that all simple to view other user's feeds along with latest feeds in a box like MySpace or FaceBook.

Bulletins are also a nifty feature and a great feature for any social network to have. :)
This not mainly makes Dolphin a better alternative to MySpace but it's what makes a user's network a "user's network" seeing posts and bulletins by there friends.

Why should we have these features?

Because these features along with a lot of features that are already packaged in D7 hold dynamic content. Content that's always changing and updating that's not relying on webmaster(s) to modify.

But overall I like D7!
It has a lot of potential already and I congratulate boonex team on their efforts!