I think that the market is still scrambling to accomodate the radical changes that have taken place since the advent of digital technology. Once this is done there will be a recognition of photo-journalists and their skill set and a subsequent backlash against these camera weilding journalists that Pickett describes.
However, like I said earlier there I think magazines are still an untapped market for photography. The fact that the agency wants to concentrate on magazines is interesting. It would be interesting to know what kind of research they have done to support this claim as it stands against everything Pickett Wilson has predicted. I don't know where you are located Pickett Wilson, but this is a European agency so one would hope that you are taking into account that demographic before making such assertive unfounded claims. What is viable in one part of the economic world doesn't necessarily ring true for the other side.