How much can be read into whether "sector" or "space" is one's preferred descriptor in this context?

Think about it. Don your semiotics hat and ponder it for a while.

"The problem is that you've got all these software VC's, they don't know what to do with themselves."

"I think it's great that the Internet consumer space is heating up again. But consumer is also quickly becoming a space where lots of venture capitalists are diving in without a clue."

There will be some big winners in this round, but many more losers along the way.

Woo hoo! Let's hear it for the Losers!