I write for free publications online - I don't see that. I see the opposite. Knowledge is readily accessible, endless and free - I don't see a dumbing down of people, I see people more able to express their thoughts and communicate with others.
Forums alone are a good sign of this - look at this forum and how it's grown in the last few years. People are finding their beliefs, investigating their theological views and political standpoints. . . and shooting from the hip.
I think you're conflating knowledge with information, and they're two very different things.
This forum is filled with a lot of information and more than just a little disinformation, but very little real knowledge.
The fact that a high school drop out is posting his thoughts on the economy to the Internet doesn't necessarially mean that the Internet's store of real knowledge has increased in any signifigant way.
There's a principal in information science called (I believe) Mohrer's Law.
What it states, in principal, is that people will put in the least amount of effort necessary to meet their information needs.
Additionally, it's been demonstrated in numerous studies that people will value information more if it comes from a source closer to them (you'll be more likely to trust what a friend tells you, despite that friend not having any real expertise on the given toipc, than trust an expert who you don't know and have never met).
Finally, another principal of information science is what's known as the "anomalous state of knowledge" (or ASK). Essentially what this is, is the idea that people who are looking for information frequently don't know what they don't know.
Put all of that together, mix in the Internet, and you've got the perfect storm of people thinking that they're becoming better informed, smarter, and more knowledgeable while nothing could be futrther from the truth.
Essentially, you're taking the word of a high school drop out about the state of the economy, you trust what he's saying because you know his posting history and that he generally tends to say smartish things and besides, you two tend to agree on a lot of stuff, your questions about the economy are quickly answered all in one place by this self-styled econ guru, and you don't know enough about the subject to even ask the kinds of educated questions that would help you ascertain whether or not you should be talking his thoughts as authoritative.
You read what he has to say and you think you've learned something, and I guess after a fashion you have, but you haven't really learned anything worth knowing.
I guess my point is that "more" isn't necessarially "better".
Seeing "more people more able to express their thoughts and communicate with others" doesn't mean that those thoughts are worth having or worse sharing.