One problem this article doesn't talk about is that people who get rejected from every publishing house (or who don't bother sending to traditional publishers) can now just throw their book on Amazon.
Ploughing through the slush pile was never seen as a fun job, so it's weird that the stuff in that pile is now being sold. http://www.theguardian.com/books/booksblog/2007/may/23/thesh...
There's no sensible way for me to find decent new content, so I stick to authors I already know (until they put out a duff book, where I drop them) or I read things like One Story which has let me discover some amazing writers. (eg Caitlin Horrocks http://www.amazon.co.uk/This-Is-Not-Your-City/dp/1932511911 )