The New York Times has published an interesting article about how professional photographers (and in particular, editorial photographers) are getting squeezed out of business in the digital era:
"Amateurs, happy to accept small checks for snapshots of children and sunsets, have increasing opportunities to make money on photos but are underpricing professional photographers and leaving them with limited career options. Professionals are also being hurt because magazines and newspapers are cutting pages or shutting altogether."
It's actually worse than that. Many amateurs are willing to give away their work for nothing, happy just to see their name in print (aka: Capture My Chicago, and other sham photo contests that take advantage of people's vanity).
Don't get me wrong-- I love digital photography. I've become a much better photographer since switching to digital five years ago, and I love the enthusiasm of people I know on flickr and elsewhere. But there's no denying that the rise of digital has had significant ramifications for photography as a profession.