Looking at my situation as a single person operation, I don't see survival in my cards. In fact I get that overwhelmed feeling. For all the work I put into my current sites, I don't see a scenario where they have a fireballs chance in hell to compete. That's no joke.
Can webmasters survive who wish to hire a team of writers or who already have a professional staff in place? Most likely there is survival in that plan. Personally that's not an investment that I'm willing to make.
I think there is a big divide in this thread. I'm sure there are some PT webmasters who are hopeful, but I'm not one of them. I think due in part to the fact that I enjoy writing about semi popular subjects which means my content ultimately ends up at the back of the bus. Don't blame me for creating content that I care about please.