That's where I have a hard time with the "blame Kodak" camp.
I was an early adopter of Ofoto.com, and stayed with them after Kodak bought them out. You can't say Kodak wasn't making an effort at the online/digital/social/POD world. They just (like 99.9% of companies that tried) didn't make it. Sure, we can look at that in hindsight and point to the various bad moves they made along the way, but pretty much everyone made bad moves.
I was CIO for a well-funded dotcom company in the late 1990's into 2000. I lived that world. It was a ridiculous time. We were ALL scrambling around, not knowing what we were doing, taking every shot we could, knowing that if we somehow got it "right" we would be looking at the brass ring of all brass rings, but knowing that the odds were massively stacked against us.
Its easy to say, today, that all we had to do was what Google (or pick your favorite internet company) did. We were all trying.