I especially enjoy the bit about the American study:
Murdoch continued: "Mr. Rather and his defenders are not alone. A recent American study reported that many editors and reporters simply do not trust their readers to make good decisions. Let's be clear about what this means. This is a polite way of saying that these editors and reporters think their readers are too stupid to think for themselves."
To be fair though, the media in America created this stupidity they find in their readers through constantly manipulating them. I'm not saying European media is much better, but I'm just saying there is a reason why we know where Australia is and a surprising amount of Americans don't.
In any case, he is right. The blogosphere is massive, and the right people can exercise an astonishing amount of pressure.
Unfortunately, this also tells us how susceptible we all are to the media, something which is quite scary.