Also, a lot of "designers" and "design agencies" can't code HTML worth crap and the value they provided was minimal.
To me, a good independent designer codes, knows quirks, and also has the eye for design. If you're a larger company and you want the specialists, it's just better to hire them. And if you don't understand the importance of design, there's an unlimited amount of cheap, quality templates out there.
The trivial work for Photoshoppers with a design degree is up.