Last.fm - What happened?

I've been a user of last.fm since 2006, and it feels like they've missed SO many opportunities. What started off as just scrobbling could have been so much more, but the site is basically unchanged since the time I joined.

They could have been Pandora if they'd gone for an advert supported radio, instead they got rid of their free radio and just charge for a premium one. They could have become Soundcloud if they had any kind of foresight, it would have been an obvious platform for artists to use. They could have developed the events section and be the SongKick of today. They were in a perfect position to offer a streaming music service like Spotify or Rdio, with a huge userbase and the perfect listening data to develop it. The website is a mess, and they really could have developed the social features to make it a fantastic social network based around music.

There are probably countless other examples, but this is just what comes to mind at the moment. I have no idea how they make enough money to still exist today. I still scrobble to last.fm but I'm not sure why. Perhaps it's just because I've been using it so long now. I used to love it, perhaps that's why I am annoyed they haven't developed into something great.

Does anyone else still use last.fm? Can there be any future for it when they have no innovation whatsoever?

PS. Sorry for the badly written, disjointed post