Journalism is fine; it's readers and the people who chase them who have all the problems.
David Barstow won an investigative Pulitzer for his investigation into the Pentagon's too-close relationship to retired generals who performed as propagandists during the early stages of the Iraq War.
The Department of Defense's Inspector General, after observing the award and receiving sharp blogosphere critiquing in the fallout, recanted an earlier report that trashed Barstow's version of the facts.
The marriage of print prestige and interactive pressure achieved this rare result. The people who ceaselessly bewail the death of journalism should actually try practicing some sometime.