Does Nick Denton know something we don't?

Now many are questioning whether or not AOL paid too much for Weblogs Inc due to Nick Denton's plan to downsize and build. Does what Nick Denton do shake up the business of blogging? Is he the Warren Buffet of weblogs where many listen and base their decisions on what he thinks? Well it seems as though what he says or does impacts what people think and ask. So did AOL really pay too much for Weblogs now that Mr. Denton claims that it is increasingly hard to make money blogging? Are our bosses going to make drastic moves based on Mr. Denton's statements and fat cutting plans? In Denton's own words