What I like about the Wired piece is that it challenges Calancanis's assumptions. "Longtime bloggers," Wired points out, are "dubious about whether blogs can be cash cows."
I'm with the longtimers. Blogs aren't about making money; they probably never will be. Blogs are about marketing; creating a narrative; and thus about designing and maintaining an identity, a brand.
I don't believe we live in a world where individuals have become brands. Rather, I believe that individuals have always branded themselves within their own communities (schoolteacher, athlete, scribe, and so on).
These days, moreover, we participate in virtual communities -- in mass communities, mediated by television and other "broadcast" media, and in thin communities, maintained by the "narrowcast" medium of the internet.
Those communities are themed and powered by the common interests of their participants; communities are no longer necessarily based on cultural or geographical associations.
Our world is one of overlapping communities, of mass and minority communities. Blogging is a narrative form that works particularly well for medium- to small-sized communities.