I agree that modern technology has made photography far more accessible to people now, I see that as a good thing myself. Also the darkroom skills are learnt much more quickly with modern software, again..this is nothing but good.
But I disagree strongly with the comments suggesting these tools, and the availability of reasonable equipment for a modest outlay, have degraded or reduced the appeal of quality photography. It's really as simple as this, the CD only shooter, won't get studio rates..so they don't try (and I can't blame them), they are trying to build up a portfolio, if they do that by taking jobs for poor wages, that's up to them (I've known a few work for nothing at all, to get experience)
Any established photographer simply is not competing in this segment, so price is not always a factor..the weekend warrior client, would not book a top level shooter. So live and let live I say..each has a place, if people pay..they dictate what they want. I've never understood why long established shooters complain about cut price people, they don't have any impact on your business. I think there is overpricing, and underpricing in the market, but it exists as it is, nobody going to change that.
Equipment wise, really don't know why this one comes up again. So you shot weddings with a D200 4 years ago, any cheap DSLR can match that low light wise, right now. I'd rather trust a good photographer with a Canon 20d and a 50mm from ebay, than a weak one with a D3x ;-)
Regarding convergence, I don't believe it will seriously impact stills photography either. If the wedding client cuts back, 9 out of 10 it's the video guy who gets the chop. Stills and video are separate specialities, some might offer both..I'm not sure it's easy to do that. So no overall I don't think things have got worse, yes a lot more competition around, but so what? Not a bad thing..
You can have a huge shed full of the finest wood carving tools known to man, but you need a craftsman to make something good. Thus the same applies to photography, the wealth of information and affordability of equipment, change nothing, you have to make your mark and stand out..that is all.