I like the new layout. If I had some criticisms, I think the design is a little too cluttered. Also, when there is a video posted on the homepage, my eye goes right to the video instead of the news. Therefore, it should be separated. I am sure the reason why the wanted to combine it was that the video page was getting far less views than the news page. Most people submitted videos to the news page to get the most hits. This design also gives room for more ad space.
Very inspiring, saw this on digg. I am glad to see some women internet entrepreneurs. Also, that sector of the market is very hard to break into, try doing a search for myspace layouts. These websites are plagued with ads. She said in her article she focused on user design and branding which is key.
As much as we all hate myspace. We have to think also, there is a new younger breed of myspace users that are learning html, javascript, css, etc. becoming web designers/developers who might not have learned or wanted to learn elsewise. That is what I think is still great about myspace and other customizable sites.