From my perspective, I see the following:
Bing - Traffic continues to rise and conversion percentages from this search engine lead all the others. Diversity remains a central component of their search product that gives users choice that include businesses of all sizes.
Google - Penalties have become so overpowering that content is no longer a central component of how they rank websites. This has also exacerbated the monetization of content scraping and the rewards given to those that do so.
Yahoo - Follows along the same lines with Bing, but conversion rates are lower. Recent acquisitions by Yahoo hold the potential to expand Yahoo's footprint online, but as of yet I have not seen a solid strategy from Yahoo that will accomplish this.
Social Networks - Facebook and other leaders in this arena continue to eat away at the market share of search engines. A social presence was once optional, but is now required of those that want to expand their sales, brands, etc.
Hyperlinks - A campaign to eradicate "bad links" threatens to expand beyond truly bad links and has introduced fear into many webmasters. Once the foundation of the internet, linking to each other now can be damaging to ones positions in the search engines and has deterred legitimate linking as a result.
Consolidation of Wealth - Branding as many call it, has been given preference over content in the leading search engine. This has shut out many small businesses from competing in an arena where content and content support should trump any other variables. Host crowding of branded/authority sites also adds to the problem of limiting user choice.
Those are a few of my thoughts on the "state of the internet." As we all know, the internet is comprised of many different components, and no single search engine or social network is the internet. However, major players do have a responsibility to those that they serve and to carefully maneuver as their actions can and do have a broad impact on the digital economy. Some have failed in this responsibility, in my opinion.