Seems like the digital Industry (UK anyway) is going through an introspective phase in the last few days.
Last week it was the Drum highlighting a forthcoming event with "do Agencies need suits".

http://www.thedrum.co.uk/news/2010/06/24/14429-do-agencies-still-need-suits-join-the-debate/

There will be lots of reasons for and against given - and whatever your start or end position , questioning received wisdom is always a good thing.

My view is Yes, course they bloody do. For lots of reasons, unless you are a micro business (freelance or couple of folk specialising in a niche area of creative services). Or are a team of creative / coders / writers who also like to do all thier own business development, proposal writing, assett chasing, amends confirming, budget planning, strategy writing, cross-media architecture, client retention etc each and every evening after a day of concepting or creating stuff.
And yes I know the difference between PMing and 'Suits" but both are necessary if you want to service a client above and beyond the freelance/ micro team reactive level. Let the creative / tech experts I've always loved working with get on with being just that.

And at the end of last week the NMA also navel gazed with the question (I'm paraphrasing) "do brands really have to do social media?". The implication being its all a bit of emperor's new clothes that they are being bullied into admiring or trying on.

Have  a read yourself and see what you think.

My view is that specific platforms / services may rise and fall (e.g. 2^nd life, as the article cites) but the social / connected world (that’s going to be all of us, The World, not a niche audience) is not going back in the box.

If you / your brand are not at least considering the optimal way to use social media then others will step around you and engage instead.

e.g. its not viable to stick to 50 more years of shouting from the sidelines. Okay I'm generalising about broadcast, print media to make a point. I respect broadcast media, DM, SP , PR .. - all part 'of the mix'.
As is social media, which incorporates / is them all.

And those clients who do engage in this 'new fangled wizardry' and with the most thought-through / authentic / honest / engaging / adaptive approach etc will last longer and do better.

And in a constantly evolving space it’s going to be an ongoing journey.. test and learn etc..
but you can’t put it down as a ‘fad’ or cite some technology blind alleys as a reason to not engage, at all.
FFS.

photo under Creative Commons from fishbwl:
http://www.flickr.com/photos/fishbwl/2952036795/

Or ignore the growing case studies of success that are cropping up in the public (connected) domain.

Actually, you only have to look at the NMA / ReputationOnline portal to see some case studies re social media success from the recent Cannes International advertising awards.