Are blogs more credible than traditional media?

David Meerman Scott says they are.

"Readers of blogs view the information shared by smart bloggers as one of the few forms of real, authentic communication there is," Scott says. "Audiences consume advertising with skepticism and consider pronouncements by CEOs to be out of touch with reality. But a good blog written by someone within a large or small company, a nonprofit, a church, or a political campaign commands attention."

Scott’s new book The New Rules of Marketing & PR: How to use news releases, blogs, podcasts, viral marketing & online media to reach your buyers directly will be released by John Wiley & Sons, Inc. in June.  (Apparently short titles are passe!)

Scott goes on to say "For decades, only journalists held the power to make or break a story. But today the Web is like a huge online city teaming with individuals and organizations of all kinds. Corporate blogs written by employees are the sounds of independent voices just like the sports fan on the barstool or that friend of yours who knows everything about stereo equipment. Corporate blogs and business bloggers are now important and valuable alternative sources of information, not unlike your next-door neighbor or the helpful salesperson at your favorite shop."

Most of us know Scott from his blog Web Ink Now.

What do you think?  Is this a chicken little yelling that the sky is falling (traditional advertising is dead?) or  is Scott right on the money?  How do you reconcile Scott’s premise  with my recent post: Name a new product from 2006?