Every time I hear someone say that democracy won't suffer as professional news orgs fold and that bloggers will fill the void I think of stories like this.
Bloggers have their flaws, but so does mainstream news.
There's nothing special about blogging, it's just a medium. Organizations build up trust through their track record, the same as in any medium. There exists tabloids and authoritative news outlets in the print world too.
A few year ago on April 1st, a bunch of bloggers got together and did this entire chain of a fake news story, each linking to the next one in the ring as "proof" of their story, no one actually ever leaving the ring. I thought it was amazingly self-insightful of them.