Its just the world we live in now, technology and its application in the world is advancing at such a rapid pace that businesses are struggling to keep up with the way the consumer is utilising this wave of social technology. No one could have predicted 10 years ago that the world would be the way it is now, and trying to predict what it will be like in just another couple of years is impossible.
Mass media and photography has been made available on a scale previously never thought possible, and it just so happens that an art that was once the realm of only the dedicated has become so mainstream its part of most peoples lives.
The key here is to find a way to shine above it all. Thats a hard one, but at the end of the day competition breeds creativity and those that are truly good will always find a way to get ahead of the curve.
So what if everyone has a camera, so what if everyone is taking photos and uploading them onto their shiny new "portfolio" website and flickr etc... they are still generally crap, with almost no thought or vision behind them and end up as just crap snapshots. They key to all photography, well art in general, is the visual narrative. The conneciton with the subject, the connection with the viewer, the excellence in delivery and many other factors all come together to create a piece of visual narrative or art piece or photograph.
This can never EVER be achieved through technology, so just trust in your ability and use EMBRACE this new technology as a method to be seen.
Yes we have never been in such a rich media world before, but also has it never been easier to reach a truly worldwide audience with your work.
If you dont see this world now as a way to carve your mark, you either have little confidence in your work, yourself or generally are unwilling to adapt.
Its always easier to take the easy path and complain about how crap it all is, its much harder to stand up and figure out a way to get ahead.
Competition has always been there in one form or another. The game hasn't changed, just the players in it.