Why do you find it unthinkable that Friendster might ban users for posting racy pictures?
Of course he is painting in broad strokes in the interview, but MySpace's 'in' was that they started by attracting creative people, such as wannabe models, musicians and photographers.
I don't remember anything even remotely shocking on MySpace, but the mere presence of people like Tila Tequila was a 'important' factor in MySpace fame at that point. Wasn't it the first breach between remote celebrities and you on the web ? Before that all you had was tiny bits of medias, and all of a sudden, you get to comment on their page. Not even an official website, but the same website you have a profile on.
Of course he is painting in broad strokes in the interview, but MySpace's 'in' was that they started by attracting creative people, such as wannabe models, musicians and photographers.