I think it can be positive as well as negative. For example, I'm sure a site like myspace helps promote musical groups quite a bit. If I've never heard of a band, I'll go to their myspace page, which usually have a few of their songs, bio information, etc. I've probably done that a couple dozens times now, with some good results (for both I and the band's pocketbook). I even happened upon a musician, Akira Naito, that I had been talking with back in the late 90's, but that I had lost contact with after he returned to Japan. Another musician that I like, also living in Japan at the moment, is Marty Friedman; without the internet, I most likely wouldn't have been able to follow what he was doing.