It's weird to reference new media and not take it into account. MLB.TV delivered 127.2 million streams in the first two weeks of 2009. It's hard to casually find statistics about the subscriptions last year, but that 127.2 million number was a 136 percent increase from the previous year. Attendance has also risen steadily at MLB stadiums. Check out the wiki for record-setting home attendance; most of the numbers are in the 2000s (decade, I mean). http://en.wikipedia.org/wiki/Major_League_Baseball_attendance_records
You also wrote: "While the NBA and NFL constantly remake rules for speed and action, baseball's last significant change was the designated hitter. In 1973."
That's just plain wrong. The MLB added a one-game wildcard last year in both divisions and updated several rules before the start of this season--notably a rule on balks, which was certainly imposed to speed up the game. There's also talk of eliminating the intentional walk.
That wildcard game drew only 4.6 million viewers--to TBS, which considered it a smash success. You also make a lot of choice comparisons between a series of games to ratings for a single game championship like the Superbowl, which is especially hard to swallow given how the Giants crushed the Tigers last year. Lots of people didn't continue watching the blowout, but that's true of any sports event.
You're also wrong about salaries determining championships or the Cubs would have won one by now. Plus, the Yankees suck this year, and they're pouring money into their team. The Dodgers are good, but they were beaten by a smaller payroll. The A's made it to the postseason on a pretty light budget. And about that "faster route of free agency"--ask the Marlins how that works out.
I just don't think that this editorial was well researched or reported.