I think this is a classic mistake in analyzing trends. What we are going through is a typical hype curve: http://en.wikipedia.org/wiki/Technology_hype

First, a technology/trend gets way too much buzz and results start to disappoint so it curves down. Then, when everyone's cynical, the real value companies start to take off.

Web 2.0 has used up its currency as a buzz word. Fine. But the technology itself has been wildly successful.

I work at HubPages.Com, a Web 2.0 startup that gets revenue from online ads and we have never been doing better than right now.