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I suspect Godin has things entirely backwards (based on the blurb--I haven't listened to the audio). If anything more people are making more money writing than ever, and having an easier time finding an audience. It's still a major challenge to establish oneself, but technology has only made it easier to produce, distribute, and collect payment for written work, and trade on the reputation one gains by doing so.
If writers and publishers focus on what they can control--producing good work and making it as easy as possible for readers to get it, pay for it, and read it--rather than wringing their hands over increased competition and sharing, the opportunities are immense.
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