Lots of us wordy-types are linking to this look at the publishing industry (via Boing Boing), so I might as well, too. Nothing new here, really. I was hooked on the 2Blowhards after Arts & Letters Daily linked to Michael's whizz-bang analysis of writerly expectations vs. the publisher's (in)ability to deliver.
I doubt there are any writers who didn't have visions of literary grandeur when they took their first typing lesson. This sort of wake-up call is better received earlier, rather than later. And if you happen to be a wordy-type who finds this all terribly discouraging, I recommend you get a copy of Carolyn See's Making A Literary Life: Advice For Writers and Other Dreamers. She is candid about the work you can expect to do, and has some very basic and do-able strategies for the writer who wants to keep food in the fridge. Cory Doctorow and Michael Blowhard might propose other strategies -- to my mind, they are all worth a writer's consideration. Good luck to us all, I say.