What a silly conclusion. Web 2.0 is so successful that it has become synonymous with Web. When people think of web, do they still think of old, mostly 'read only' apps, or do they think of new, social and user participatory apps?

If you take a look at the charts of top visited web sites, you'll see that the answer to that question is quite clear and that the Web 2.0 has conquered the Web.

Now, the fact that a trademarked search term 'web 2.0' is losing its steam is O'Reilly Media's problem since that's their property. You could say that Tim O'Reilly has been pushing it so hard that he was too successful at it.