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Mich D
Absolutely. Creating intelligence (with which users can interact) is what we do now, and requests for a recommendation engine are something we get regularly (and are working on).
I think, though, that better analysis of and interaction with our data is just an early step, and one that's still very "machine-based". A fundamental part of lifestreaming is that it's our lives, and we're not machines. Even with hard data, once you get into the recommendation side of things, it gets less binary and more human, and humans are messy and unpredictable sometimes.
Slicing and dicing data in particular ways isn't going to be a one size fits all answer. Especially when we get into the parts of lifestreaming that deal with relationships. A need for relationship management online is already something increasingly needed, and filled with all the subtleties and minefields of human interaction (combined with trickiness like invisibility and relationships for which English has no accurate descriptive terms).
There currently aren't really intelligent tools to manage relationship-centered data well like there are to manage financial data, RSS feeds, photos, etc., and I think it's something we're going to have to sort out, though not without a few stops, starts, and re-directs, I'm sure (see early comment about humans being messy and unpredictable...).
The "next" Web will be around of Personal Media and Lifestreaming is one of the major components...