The guy is stupid or ignorant. Several false statements:
"It's made it impossible to govern anything the size of the nation-state.
Nation-state is a particular type of country (think of what Hitler was trying to do with all the Germans). His use of it indicates he does not understand what he is talking about.
Barlow also said that President Barack Obama's election, driven largely by small donations,
Which we know again to be a lie. Obama got more big donations than McCain did, and most of his money came from big ones.
He should stick to what he knows and not make a fool of himself by sounding off on things he is clueless on.
As to your take on it, you are a lot smarter than he was. I think you are pretty accurate as far as you go, but you stopped short.
The internet is just the soap box on the corner where anyone is free to express their ideas or opinions. The difference is instead of reaching a few ears in one city, you reach a few eyes in several states/countries. As a source for news, it is invaluable, but it is not going to be handed to you on a silver platter. Like anything in life, the value is related to the effort expended.