The important lesson here for HN entrepreneurs to take away is that connections can matter as much as a startup's product itself.

If we are to go with the assumption that your houseSYSTEM was feature-comparative to Mark's The Facebook (and for the sake of argument, we'll assume your assessment is accurate), then Chris Hughes' person connections to The Crimson may have very well been one of the significant variables that resulted to your products having radically different futures. While it's a romantic notion to think that a sufficient amount of blood, sweat, and tears will ultimately lead to success, the reality is that an external factor such as getting into Y Combinator or having a well-timed TechCrunch article can (fairly or not) make or break a startup.

Remember to get out of the office once and awhile and network. Simply delivering a product is not enough.