When it comes to local niche sites, being first to market can be the determining factor in who wins long-term.
The first to market has likely attracted a community of users who are engaged with the site through user-driven content such as blogging or even basic commenting. This is increasingly why newspapers can't beat down local competitors in niche markets.
The latest example is the Pittsburgh Post-Gazette, which bought a local moms site and relaunched it with a fresh design. Among the first examples I can recall was Fresno Famous, which was bought by the Fresno Bee when it realized it couldn't create a competing arts community online.
After all, there are only so many people in a niche audience. And if they already participate at one site, then it's unlikely they'll be moving. That's why even crappy sites that are effective community organizers can be a threat.

