We have more information and services available than ever before. And it's never been cheaper or easier to start something new.
I don't know what "basic rules of navigation and usability" the author is referring to, but I virtually never come across a site that can't be navigated or isn't usable. And all software gets "slower" as hardware grows faster [1], it's not anything specific to the web.
The web is amazing, nothing has failed, sheesh. Yes there's always going to be room for improvements both in speed and usability -- developers are human, nothing will ever be perfect -- but the idea that the most popular digital interface technology of all time has "failed" is ludicrous.