Silicon Alley Insider jumps in and notes that due to the new Facebook design, widgets are dead.

Sounds bad for developers, right?

The reason it isn’t is the distinction between “widgets” and “apps”. Widgets are simple displays of static information. Applications are robust, full experiences on the web. Sure, widgets are dead. But apps are flourishing.Most importantly, developers make money through apps, not widgets. That’s why the death of widgets- though sad- is probably good for the Facebook economy.