I think photography is thriving in the digital onslaught. (not as a profession, but as an art obsession or hobby) I will qualify that as I believe photography to include both digital and analog means.
I think photography as a profession is beat pretty much to the extent it will be beat. The beating will shift and progress to video shortly. It's a stratified system where hobbyists now use $1000 systems that produce 1080p high quality video and have access to nice software. Not long ago, hobby meant VHS recorders making inferior video edited in a further quality-losing-manner. Now, anyone can make video suitable for youtube or hulu or vimeo. Kids make video with ipod cameras for school classes and for fun. Consumers don't want three hours of lush Kubrick cinematography; they want a sugar/comedy fix on youtube a few minutes at a time, or a 3d gimmick remake with CGI. Network TV shows are the same old manufactured crap with new actors. Reality TV is beating a dead horse for the most part. Content producers and cable/dish companies are having constant pissing contests over rights and money at the expense of our wallets. It's ripe for upheaval from the bottom, and the tech and skills are present.
As for the Internet and photography, it's the conduit by which many people learn film photography or learn alt process or figure out how to meet together. It's also a way to share digital photos of course.... Film would be dead if the Internet were not available for ordering film & supplies since nobody local stocks things. Without the internet, there would be zero market for used camera equipment and it would be going in recycling bins instead of finding a new life somewhere in the world. I bought a grafmatic a couple months ago; without the Internet to show me how to use one, I would have ignored them completely. There's a ton of film photo stuff going from eastern europe to the US; a ton of stuff going from the US to the far east, it's quite a global marketplace because of the Internet.
I don't think film is bashed on the Internet. The latest and greatest is hyped, sometimes at film's expense, but the hype has been happening since before the Internet. I remember dropping my pop photo magazine subscription back in 1992-1993ish when I realized it was basically camera porn with no meaningful photography.