I worked at Zedo pretty early on. I did a year there, pretty much exactly year 2000 (now coworkers now know who I am).
We didn't see Google coming to crush the ad market at all. I had already left but Im sure Google's elephant sized footprints in the market made them radically change their business plan. I didn't talk to them much, and on the web I read stories about intrusive Zedo cookies, heard them called "king of the popunder" and heard stories about "popup blocker blockers". This made me a bit sad, why do all that? But I guess you either do that, or throw in the towel and close up shop. I can't say what I'd do if it was my savings on the line.
As an aside (always a tangent!) I had an 8MM videocamera. Though I filmed some stuff in San Francisco (hey Dave, any news on the video for me?) I always wanted to film us. But I couldn't both work and film. I was actually slightly pissed when Startup.com came out. Hey that was my idea! But you can't objectively film what you're in.