rocknbil - 3:36 pm on Apr 19, 2010 (gmt 0)
Apparently, dictionary.com hasn't caught up:
Usage Note: The transition from World Wide Web site to Web site to website as a single uncapitalized word mirrors the development of other technological expressions which have tended to take unhyphenated forms as they become more familiar. Thus email is gaining ground over the forms E-mail and e-mail, especially in texts that are more technologically oriented. Similarly, there is an increasing preference for closed forms like homepage, online, and printout.
For me, it will remain a site on the web, hence, web site. :-)
As in And Earth Shall Abide, the language is evolving.