Very good point -
When I was in grad school, I spent a lot of time with a painter on the faculty who was scared to death of New Media. She went on a great deal about how painting had been marginalized in the school and internationally, and all of theis media art, expecially New Media, had taken the fore.
Last year, I went to NYC with my long time collaborator and later grad advisor Greg Little, and we hit all the major galleries... I woudl frequently, look at him with astonishment and say, "You know? I think I see - a PAINTING! Oh my God! Thsi place is filled with them! Look over there! There are more! Chelsea must be horribly out of touch, as obviously they don't know painting is passe' now. How gauche..."
When I spoke at Video Vortex as well, last year, I remarked that although there is a flattening of culture, the power center of the art world is relatively unaffected, exceopt that new forms are intregrating into it, which is not new.