Plannerliness poins out this article in the New York Times on the future of the album which is well worth the read. And to be fair, I find it a bit scary... Sure, I can see the merit of a good single as much as the next person, I still buy 12" maxis on a regular basis after all. But what happened to a lot of electronic genres is not something that you'd wish upon the complete music market.
The 'single' model, coupled with the birth of 'bedroom studios' through affordable exuipment, stimulated an enormous group of artists who started producting stuff. Which was a good thing because, as we experience everyday: you need to have a huge pile of ideas to be able to identify and feed the great ones. However, for individual consumers, it became very difficult to find your way in this evergrowing mass of singles and new releases. Which is one of the reasons why the early nineties saw a huge revival of the record store: curated consumption avant la lettre.
At the time, I spent about 4 hours a week in record stores (university is great isn't it?) sifting through huge selections of new releases and old stuff I had yet to discover. This went on for about 7 years and at the end of that period I truly considered myself as something of an expert. Only to have a period of a few months (the end of my studies) were I decided to take a break (from playing out and shopping) break it all down. In the space of 5 months I lost track of a lot of artists, labels, new releases, individual singles,...only to find myself completely lost upon my return to the store.
I can only imagine what would happen if this kind of development would continue throughout the whole market... On the other hand: we do have a lot more automated services available and user recommendations and other 2.0 services might someday replace the advise of a store owner who knows what you're into. But, as it often goes with internet related services, the voice of the masses is not always fit to replace the opinion and knowledge of the individual expert.
Plus, albums gave artists a bigger goal than scoring the next crowd-pleaser, forcing them to think through their own strengths and weaknesses, the way they want people to be touched by their music, the structure within an album and the order of songs,... And I'm kind of hoping that won't go away, or as Steven Johnson puts it at the end of this Wired article on bitesized culture:
"Yes, it sometimes seems as if we're living off a cultural diet of blog posts and instant messages - until we find ourselves losing an entire weekend watching season three of The Wire. The truth is, we have more snacks now only because the menu itself has gotten longer."