I don't think it's that bloggers are more free of conflicts of interest, but that there are more bloggers so there is a higher percentage whose conflicts of interest are not relevant to a given story.
Felix Salmon also fudges the notion of reporter vs. blogger. He is employed by Reuters, and he blogs for them. How do you draw the distinction between blogger and reporter?
I'm not trying to take away from the important transformation that is occurring, but I think that to put it in a binary divide of bloggers vs. old media/MSM reporters is too broad.
If you're not information literate, maybe you need a perfectly impartial press with no conflicts of interest. Tough shit--human nature rarely allows us such a luxury. The history of news has more Hearsts, Pulitzers, Murdochs, Drudges, Huffingtons, and Arringtons than any kind of ideal journalists.