Web 2.0 - A modern recreation of Socialism or is it

I read a really good article over on Organic Frog about the 'Digital Utopia' and how the use of all this technology is driving social change towards a more collective growth of information and intelligence. I dont want to get into a debate over politics. But I have never understood how socialism has such a negative connotation. To spread the wealth evenly to their poor areas made sense to me for some countries. I always thought is was due to the negativity towards the group of individuals that control too much of the money and power. They say Mao refused to have expensive clothes, as it was against everything he was trying to build in his country.
In a world where capitalism is on the up and the elite become more powerful and wealthy. Are we attempting another cycle of this socialist dynamic with the advent of 'collective intelligence' through social technology. I know in the past 3 months or so since I have been getting involved. My knowledge has expanded ten fold. I have also helped a huge amount of people with things they are tackling off the back of that.
Or does this technology do the opposite and actually allow a real and true democracy due to the power of an individual that this technology is starting to allow. I dont know. But im going to get involved and really love watching whats happens.