You may well have already read this interesting article and in some ways even more interesting commentary. But just in case you missed it, take a look at Dan Gillmor's article The Decline (and Maybe Demise) of the Professional Photojournalist (article published under Creative Commons Attribution-NonCommercial-ShareAlike 2.5 License.)
I think he's stated the obvious when it comes to on-the-spot news. However as others have pointed out, merely recording the moment does not equate to journalism. I certainly do not feel threatened by ubiquitous image recording devices as there will always be a market for a sensitively told story in pictures and words.
My prediction is that we will see a polarisation between on-the-spot recording of events and high quality photojournalism. There's a market for both.
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