J.M Tyree, a current Stegner fellow, gives a thoughtful response to King's article about the "ailing short story."
He takes the discussion into the realm of online fiction, which I thought was interesting.
"The online world, especially for the older crowd, is still conventionally depicted as a kind of South Bank of London filled with the literary equivalent of bear-baiting."
It's a long article, but not a bad read. If you read it at all, read it to figure out how the above sentence fits into the overall argument.
Somewhat related to the above is this site. It's a hypertext project...