There’s lots of different definitions of Web 2.0 but the common consensus is that it’s about user generated content and social networking. Ask anyone about Web 1.0 and they’ll all tell you the same thing, it was strictly about consumption. It was the advent of the information age.
In this world it’s hard to strike a balance. When do you stop consuming and start producing? when do you stop producing and start consuming? You need to strike a balance. To often I find myself reading a ton but not making use of it. There are just too many wonderful new sites out there and not enough time to look at them all.
There is certainly a point at which the marginal rate of return for content consumption begins to shrink. The rate of return for production begins to reduce as well, but at a much faster rate. To truly add any value or knowledge you need to first know what is out there and secondly know what people are interested in. To do this you need to be reading (or consuming). The amount of appropriate production is directly related to your knowledge or experiences. Therefor unless you’ve experienced everything and know everything you have more to gain from consuming than you do from producing.