Wikipedia is a wild success and an utter failure
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None of those things is inherently fun for most people. Your average internet user -- someone who would have loved contributing a fresh article ten years ago -- probably has little desire to devote an appreciable amount of time to curating and categorizing other people's work. But yet, there's a vocal minority of users who do enjoy such things, and those are the "procedural whackjobs" of which you speak.
Call this the rise of the Editorial Class. Wikipedia is now dominated by a small percentage of editors, who revert new work by contributors, and whose arcane rules, lists, procedures, politics, and supercillious disdain make contributing fresh material more a labor than a labor of love. And, lest we think this is noble work put forth by self-sacrificing custodians of knowledge, let me say that my encounters with such people have rarely left an impression of maturity, or even competence. No, for a lot of them, it's a petty power trip. (To wit: one of my articles -- thoroughly researched and painstakingly written -- was eventually lobbied for deletion, successfully, by a little clique of editors calling itself the "Counter Vandalism Unit." As far as I could tell, this is a group of grown-ass adults playing "24" dress-up on Wikipedia, complete with their own badge-like logo, who sadly wield a decent amount of editorial control over the site).
On the flipside, as you point out, some of this works in Wikipedia's favor. More timely sources of knowledge, like Twitter, Tumblr, Facebook, search engines, etc., can beat out Wikipedia's relatively antiquated categorization systems and contribution mechanics fairly handily. But, by and large, most people contributing "content" or "information" through such channels are not really cognizant that that's what they're doing (witness the big uproar over Facebook's data collection; people are inherently surprised that they've been contributing data to any sort of repository of such). Rarely does someone tweet, or post an FB status update, thinking he's contributing to the grand collection of all human knowledge. So the sum total of all the knowledge-data generated outside of Wikipedia, more current and possibly even more interesting though it may be, is still a lot more flab than muscle. That will change eventually, as data mining and contextualization technologies improve. For the time being, however, the lack of an organizing principle similar to Wikipedia's, outside of Wikipedia, will keep Wikipedia relevant. Not indefinitely, but for quite a few years to come.
I disagree. Whenever there is something big happening, after a couple of days it gets really difficult to follow just from the news (e.g. the Japanese tsunami, Arabian spring). I always go to Wikipedia and get a reasonably good overview with up to date information. I guess it only works for the really high profile events which interest the editors though...
There is a certain learning curve you have to go through when contributing, however, and one that makes sense and has nothing to do with power-hungry editors. Students, grad students or fresh PhDs especially, can sometimes trick themselves into thinking that their niche area of research is the most important thing in the world, and make the coverage of a small subtopic swell out of proportion, or write about it in a way that makes sense for other grad students but not for a broader public. That's something they can grow out of, but not everybody masters the Wikipedia style of writing from the get-go, not even very smart people.
Hence, the reason why I think these assignments are so great is because established Wikipedians get to learn students something about writing for a different audience, establishing consensus and writing in group, and Wikipedia gets better content in return. That's the ideal anyway.
Wikipedia, on the other hand, has just one endless thread of discussion comments, and like regular comments on news websites that approach is not conducive to civil, intelligent debate in the least.
And there are many structured discussions on Wikipedia that follow set patterns and rules. Take deletion: at Articles for Deletion (the area of the site where deletion is debated), there are a set of common patterns and anti-patterns of arguments that you should use and avoid using, and there is a time period where you can submit comments and something vaguely like quorate required before a decision can be made. At the end of a week, the discussion is wrapped up: it's obvious, it gets kept or deleted, and if not, the admin has to sum up the arguments and accept them in a sort of quasi-judicial manner. It's rather more civilized than YouTube or newspaper comments pages...
I'll stick to my assertion, though, that more people need to think about this stuff, because the organically grown processes don't always cut it — otherwise, you wouldn't have frustrated rants like those of Zed Shaw (http://sheddingbikes.com/posts/1297662169.html) and Jason Scott (http://ascii.textfiles.com/archives/808).
Another thing that is being tested is making the automatic templates used to notify people that articles are up for deletion or whatever a lot more friendly. For the last month or so, the Foundation and the community have been working together to A-B test better warning templates.
As for discussion threads, there's LiquidThreads, which has been in development for a while but would provide a threaded discussion system sort of like what Reddit and HN have but for Wikimedia talk pages, but still keeping the flexibility of being able to refactor discussions and move stuff about without an admin. LiquidThreads is in use on English Wikinews and on mediawiki.org, but English Wikipedia doesn't have it because it isn't quite mature enough yet (or something, I haven't kept track).
Finally, there's the big one: the visual editor. That's in development at the moment, hopefully with testing starting by the end of the year. This is going to be an opt-out WYSIWYG-style editor. See http://www.mediawiki.org/wiki/Visual_editor/software_design for a rough idea how it is being built.
There is lots of consensus that things do need to change and Wikipedia does need to have more technical solutions to the problems that are showing with some of the decade-old organically grown social processes.
How much money would it take to make this happen?
I think the citation one is huge. Even the same article often has a "Notes" (for footnotes) section and a "References" section that is a bibliography unlinked to the text. They often both contain citations in different formats. If this is hard even within an article, how is it going to happen across all of Wikipedia? I hope someone takes it on, though.
It is striking how little Wikipedia has advanced technically since it started, compared with its enormous growth of content.
However, that victory came at a cost: the software fell way behind. The community picked up the slack, making a fantastic reference site despite the handicaps. But many of the ways they did that (e.g., duplicating references all over the place) make improving the software even harder.
Now that Wikimedia Foundation staffing is starting to catch up, I'm sure some of these things will get better. But it's definitely going to take a while.
Seeing editors being proud of the number of articles they've had deleted, or the number of reverts they've made, is pretty sickening.
I admire wikipedia editors, the gnomes of our age, working tirelessly on a boring, unglamorous task which gives them satisfaction.
It's a delicate balance, though.
It simplifies distribution of documentation and files in a very user friendly way.
And let's face it. Whack jobs write books and news paper columns too. Wikipedia has a surprising amount in common with college text books.
You don't have to be the first to lay the groundwork either.
If you'd asked me, at the start of the wikipedia project, whether it would ever grow to be a useful resource I'd have said "hell no, it'll just get taken over by idiots, bad content will drive out good, you can never put together a useful resource by collaborative editing, it's a pipe dream". And yet here we are, in a situation where wikipedia is actually a damn good resource on just about any subject of interest.
Almost all the people who complain about wikipedia are people who are attempting to edit it. And some of them may have a point... while others are attempting to insert stuff that doesn't fit the guidelines. But as long as you're using it in read-only mode, what's to complain about?
The deletion of noteworthy information about popular programming languages is one example.
I spend a lot of time doing non-administrative maintenance stuff around deletion. Most of the stuff that gets deleted at the "speedy deletion" level is complete trash.
From the outside, people see their favourite programming language or webcomic or whatever get deleted, and, yes, that sucks. What they don't see is the reams of crap that get deleted every day. I'm pretty damn inclusionist, and there are people who are even more inclusionist than I am, but that doesn't mean they don't realise there is huge volumes of crap which ought to be deleted. See http://enwp.org/WP:AFD/T and http://enwp.org/CAT:CSD
Most people only encounter the deletion system because something they deeply care about has been nominated for deletion. They don't see that most of the time, the system works pretty well.
Anyway, like I said, wikipedia ain't perfect, but it's amazing how far from terrible it is.
I realize there's a tremendous amount of spam, vanity pages, vandalism, and useless content the editors have to deal with, but it's still disturbing to read about the occasional outbreaks of deletionism that affect Wikipedia, while corporate and political whitewashing goes apparently unchecked (I don't have a specific reference in mind).
We didn't reach consensus on whether to do so, but you can bet that the next time they do something equally stupid, said thread will come up in discussion. A few more major blunders and they will quite probably stop being considered a reliable source on WP.
It's the blanket "all newspapers good, all blogs bad" simplistic idea that I think is nonsense.