jayeff, you hit the nail on the head... Zango is, say, 2.5% of surfers... but there are literally hundreds of other toolbar, scumwares, asterixwares, and bullshit services out there that are nibbling into the traffic flow.
With the upcoming release of vista, I think some of these companies realize that their current "install vectors" (nice term for "security breach" or "know issue" from microsoft) will be mostly lost, as many of the basic security issues of XP will be gone, and a new set will have to be found. I would expect to see that February will actually show some improvement for webmasters as people come online with Vista and help to stomp out some of the real bullshit out there. It isn't an entire answer, but it will help.
With all the different toolbars and things out there, it is clear that many companies and many people have a finger in the pie.
It is really too bad that some companies insist on giving companies like Zango so mch money for advertising, encouraging this ongoing dilution of traffic sources.
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