Ashish we are working on figuring out the solution for the same. The blog link you gave doesn't work. There are many cases for which people trust different brands like shoppersstop, myntra, jabong, infibeam etc, So personally I feel the e commerce is pretty ripe and even if it is not we would be the first players and the leaders when it becomes ripe :D
Yes, Its good to be the first one and no doubt about it. Its not only Flipkart, there are few other good players too surely but overall the e-commerce market with really good players is still in single digits. Actually, the point I was trying to make is confidence of the first time e-commerce customers. If he/she gets a raw or bad deal (ex Timtara.com) in this very first purchase in e-commerce world by referring the cheapest price from your website, it's a bad karma. It will scare him to do his next purchase from some random website and stick to some known or reliable e-commerce website. Generally, products on these websites comes with a premium.
Personally if I don't believe in anything its difficult for me to convince someone else to do it. So, when I was comparing prices on blog manually and in parallel developed a screen scrapper. I felt even if the price is low, their service is not great through my first hand experience of actually buying stuff from them. The price comparison/cheapest price really has great potential but it should have good e-commerce websites to support it. I misspelled the blog address, it was http://sabsecheapest.blogspot.com. Its very basic thing nothing special but it account for all the discount coupons and rebates at one place, not updated since the start of this year.