I think we should not only continue to have low expectations of hosted content for bloggers, but in fact, should expect even less in the future. And though that's not a good thing for sploggers, it's really not bad for established bloggers or those new to blogging, whom have a better than average understanding of proper linking and SE content creation.
Blogging isn't gathering the same attention and excitement it was a year ago, and even then, some of those who were part of the blogging revolution were warning about the bubble bursting. I wouldn't say that the bubble bursted. It was more of a slow deflation. This state of equilibrium should be good for real bloggers, even if it does mean that fewer sponsors may be willing to make a foray into quality hosted feed/blog content creation.