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But over time I think you're right, it will all mesh in new and interesting ways, with both sides benefiting.
One of the things that excites me is the idea that people can provide value to small circles of friends with minimal effort, just like sharing snapshots. That's nano media, baby.
"I want to get more pieces in from the blogging community - there are a lot of good writers out there."
Wow! Took him a while, but he gets it. As for politics, I love that some Red bloggers are blogging for Blue blogs, and vice versa now. I for one just went "front page" with a right-leaning blog here in Georgia. Yikes! (People do need someone to revile in their lives.)
But as I like to say, "Let's blur the lines; let Diebold sort it out."
What I try to tell people about Old and New Media is simply that one is not a substitute for the other. Each fills a need that the other cannot. So, there is a place for both in the future, although it does mean inevitably that there will be less Old Media viewed.
And, as you point out, both will change in response to the other. Will there ever be a complete merge? Maybe in certain cases, but certainly not across the board.
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good luck