What is Literacy in the Digital Age

I received my new issue of NEA Today Magazine. Cover story - What is Literacy in the Digital age. It reiterates all of the ideas we have been discussing - motivation, creativity, ability to collaborate across the globe. What struck a chord with me is the argument whether technology is distracting young people from reading books and taking time away from learning proper grammar and"smart" writing. Sometimes I wonder when it is a "good" time to bring in technology to the classroom. Is technology complimenting my instruction or takinig time away from teaching students to decode text and practicing essential reading skills? Do I need to first get a student to a certain reading level so that he/she can more comfortably navigate the ever-changing world of Web 2.0? I really like to use multi-media resources in my classroom - not only do they break up the routine, but they are also a great visual tool for my students. Creation on content on the web is another story - much more time consuming, and that is where I start debating how much time I should (and could) devote to that. Well, I guess, I will keep thinking about that...