Do Hosted Solutions Threaten WordPress and Other Blogging Platforms?

With completely hosted solutions like Squarespace becoming more and more popular everyday, should content creators using WordPress and similar platforms be concerned? What about the designers and developers that create plugins and themes for these systems?

In order for blogging/content management systems like WordPress to survive, there needs to be a thriving community of developers and users alike. There’s certainly no shortage of either in the WordPress community, so I don’t see it going anywhere anytime soon. Truthfully, I find that there is a place for both a DIY solution like WordPress and an entirely hosted solution like Squarespace. I personally prefer having to dig deep into the CSS, XHTML, and PHP to truly customize a WordPress blog/site, though.

I understand that with Squarespace more advanced users have the ability to make these changes if they choose, but for me, the do it yourself aspect of WordPress is what makes it so fun.