Are blogs over as a business?

Daniel Gross writes at Slate that the end is nigh for blogging startups. Personally I think he’s fallen into the old MSM trick of generalizing about a marketplace, sure, you are going to struggle to compete in lots of areas within the blogosphere, but there are still plenty of profitable niches out there that have yet to be conquered, and the tail is long enough to sustain plenty of competition as well. Remember once upon a time Nokia was the king of mobiles phones (at least here in Australia). Today there’s lot of companies selling phones and they’ve lost market share. No business, blogging ones included, are infallible. He’d be better off taking his ideas and applying them to Web 2.0 companies, the horse has pretty much bolted there.