Web 2.0 'distracts good design'

I think he missed the mark. Design has little to do with popularity right now (think MySpace). Sure we can scale everything back so that my one finger typist dad can surf the web without learning something new. Or we can design to the next generation of users that will most assuredly use the web for the rest of their lives.

principles of good design and usability established over the last decade

Anything can be re-established if necessary. As long as you preserve the grammar of your language, do whatever you find appropriate for your users. If they love it, it means you got it right.