My two cents...
The complaints of a porn star making less than $150K a year are kind of ridiculous, but if that's what she was used to, I guess she does have the right to complain.
I think DVD sales will die out eventually, but there are still plenty of people out there buying them. It's all about what the average porn consumer feels is more convenient for them. Some only know of a few outlets like adults stores, so they continue going there and buying DVDs. If you are a bit more savvy, which most porn consumers are becoming more and more, you will find other outlets to purchase the same stuff for cheaper prices. For example, a DVD of mine sells on amazon for 15.99, that's just one dvd. On the other hand, on my site you can get that scene, plus tons of others for 19.95 a month! The kicker is that the DVD still sells very well
Yes, there is way too much free content out there, but most of it is really shitty quality. That's why website owners like me strive to provide the highest quality stuff updated daily to attract customers. I say in the long run this is actually good for the industry.
As far as talent goes, JaneB is right, there is lots of talent and if one girl is unwilling to do a scene for a certain price, there is at least 5 more others behind her that will do it. For me it's been a good thing as well because I'm able to produce tons of new stuff for cheaper prices. Good for my members!
One final point that I do think is really hurting the industry is the fact that credit card companies are canceling accounts or raising interest rates. Most people buy porn online with a credit card, if that card is inacessible, then guess what happens?