The New York Times is bothered about the speed with which misquotes can travel around the Internet. As many have pointed out (notably Instapundit), this is very much the pot calling the kettle black, given how often the MSM get it wrong. I'd go even further.
1) The NYT uses as an example selective quoting of Bill Clinton on an ABC-managed site. Isn't ABC a mainstream news organization? In the same article the NYT mentions that the ABC blog post linked to Bill Clinton's full speech. . .wouldn't that be an article in favor of the Internet format?
2) It wasn't very long ago that Rush Limbaugh was taken out of context, not only by Media Matters, but also by nearly all Democrats in the Senate. The incident was the "phony soldiers" case, in which Rush trumped the Democrats in the Senate by auctioning the letter that tried to silence him for some $2million+. Did the New York Times come to Rush's defense?
Sure Internet blogs can be raw, messy, unedited. Equally, it allows anyone to correct falsehoods by providing evidence and due diligence in unearthing facts, or challenging facts when the experts fail. Most importantly, the Internet allows those who would distort the truth for their own ends to be called out. . .Could it be that's what the NYT most fears?