THIS. Don't try to out-Google Google. Think different, be different. Radically different.
Either that or punch through the market with one, extremely well done feature (i.e. local search, photo search etc) ala Crossing the Chasm strategy. Be so good that nobody can ignore you.
I have no doubt Patrick is a stand up, high calibre guy. But he is also cashing out on his HN karma. He understands the herd / lemming mentality around here. That's okay, I think it's smart, and the product will be good.
Personally, I find it a wee bit annoying. I'd rather see a new movie than sequel after sequel.