Is reality disappearing? Are YouTube & the Web real? Is "reality" disappearing?

I'm not a great fan of Postmodernism in general, but I find myself wondering if this passage from Jean Baudrillard concerning the collapse of  distinction between simulation and reality isn't more true  today of YouTube and the Internet then it was of TV and advertising, his subjects  for this passage from America (1988):

Everything is destined to reappear as simulation. Landscape as photography, women as the sexual scenario, thoughts as writing, terrorism as fashion and the media. Things seem only to exist by virtue of this strange destiny. You wonder whether the world itself isn't just here as advertising copy in some other world. 

Are we creating all encompassing pseudo-realities which are ultimately based on the most superficial forms of  commercialism and popularity? And what effects will these creations have long-term on the texture of "Reality" ?   

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Image: Dicken Schrader
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Flickr / 13winds
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