The "My" portal hype died for all but a few central "MyX" portals, like my.yahoo. Two to three years ago "My" was hot and everybody and their brother spent a ton of money building a personal portal to their site. Many newspapers had their own news portals, such as the my.washingtonpost.com and others. Building this personalization was expensive and there were very few takers. Companies fell down this same rabbit hole offering a personalized view to their sites and so some degree this made sense and to a for a few companies this works well for their paying customers. Many large organizations have moved in this direction with their corporate intranets, which does work rather well.
Where Do Personalization Portals Work Well
The places where personalization works points where information aggregation makes sense. The my.yahoo's work because it is the one place for a person to do their one-stop information aggregation. People that use personalized portals often have one for work and one for Personal life. People using personalized portals are used because they provide one place to look for information they need.
The corporate Intranet one place having one centralized portal works well. These interfaces to a centralized resource that has information each of the people wants according to their needs and desires can be found to be very helpful. Having more than one portal often leads to quick failure as their is no centralized point that is easy to work from to get to what is desired. The user uses these tools as part of their Personal InfoCloud, which has information aggregated as they need it and it is categorized and labeled in a manner that is easiest for them to understand (some organizations use portals as a means of enculturation the users to the common vocabulary that is desired for use in the organization - this top-down approach can work over time, but also leads to users not finding what they need). People in organizations often want information about the organization's changes, employee information, calendars, discussion areas, etc. to be easily found.
Think of personalized portals as very large umbrellas. If you can think of logical umbrellas above your organization then you probably are in the wrong place to build a personalized portal and your time and effort will be far better spent providing information in a format that can be easily used in a portal or information aggregator. Sites like the Washington Post's personalized portal did not last because of the cost's to keep the software running and the relatively small group of users that wanted or used that service. Was the Post wrong to move in this direction? No, not at the time, but now that there is an abundance of lesson's learned in this area it would be extremely foolish to move in this direction.
You ask about Amazon? Amazon does an incredible job at providing personalization, but like your local stores that is part of their customer service. In San Francisco I used to frequent a video store near my house on Arguello. I loved that neighborhood video store because the owner knew me and my preferences and off the top of his head he remembered what I had rented and what would be a great suggestion for me. The store was still set up for me to use just like it was for those that were not regulars, but he provided a wonderful service for me, which kept me from going to the large chains that recorded everything about me, but offered no service that helped me enjoy their offerings. Amazon does a similar thing and it does it behind the scenes as part of what it does.
How does Amazon differ from a personalized portal? Aggregation of the information. A personalized portal aggregates what you want and that is its main purpose. Amazon allows its information to be aggregated using its API. Amazon's goal is to help you buy from them. A personalized portal has as its goal to provide one-stop information access. Yes, my.yahoo does have advertising, but its goal is to aggregate information in an interface helps the users find out the information they want easily.
Should government agencies provide personalized portals? It makes the most sense to provide this at the government-wide level. Similar to First.gov a portal that allows tracking of government info would be very helpful. Why not the agency level? Cost and effort! If you believe in government running efficiently it makes sense to centralize a service such as a personalized portal. The U.S. Federal Government has very strong restriction on privacy, which greatly limits the login for a personalized service. The U.S. Government's e-gov initiatives could be other places to provide these services as their is information aggregation at these points also. The downside is having many login names and password to remember to get to the various aggregation points, which is one of the large downfalls of the MyX players of the past few years.
What Should We Provide
The best solution for many is to provide information that can be aggregated. The centralized personalized portals have been moving toward allowing the inclusion of any syndicated information feed. Yahoo has been moving in this direction for some time and in its new beta version of my.yahoo that was released in the past week it allows the users to select the feeds they would like in their portal, even from non-Yahoo resources. In the new my.yahoo any information that has a feed can be pulled into that information aggregator. Many of us have been doing this for some time with RSS Feeds and it has greatly changed the way we consume information, but making information consumption fore efficient.
There are at least three layers in this syndication model. The first is the information syndication layer, where information (or its abstraction and related metadata) are put into a feed. These feeds can then be aggregated with other feeds (similar to what del.icio.us provides (del.icio.us also provides a social software and sharing tool that can be helpful to share out personal tagged information and aggregations based on this bottom-up categorization (folksonomy). The next layer is the information aggregator or personalized portals, which is where people consume the information and choose whether they want to follow the links in the syndication to get more information.
There is little need to provide another personalized portal, but there is great need for information syndication. Just as people have learned with internet search, the information has to be structured properly. The model of information consumption relies on the information being found. Today information is often found through search and information aggregators and these trends seem to be the foundation of information use of tomorrow.