It will work. I wasn’t too much of a fan of the traditional web-services hype (the view where webservices would be all). But now I can see a different world.
Say I’m a developer. I can easily imagine building a website, and using API’s to Google, Yahoo, Ebay and a few other sites on one website. Even a simple one. The API’s just make my life easier, that’s all, and allow me to offer a better website for my client.
If my traffic is low I’ll pay maybe US $10-30 for each API a year, and hupla, they’re making money. Maybe I’ll pay $99 to Google to use up to 100.000 queries a month on x domain names. Or maybe I’ll pay autotranslate.com US$ 2 per automatic translation over soap (and charge this to my clients). It’s cheaper and easier than getting a translation program, installing it on my server and keeping it up to date.