Nash took an honest shot at something he believed in and, more importantly, maintained his integrity throughout the process. While neither Cursor nor Red Lemonade ended up being the "game changers" some thought they might be, one could argue (and so I will) that the publishing industry overall is stronger for the attempt, and what *did* work shouldn't be lost in the discussion.
Therein lies the real problem with Klout. While its Topics feature is an intriguing attempt to add a much-needed contextual layer to its linear scoring and might have some long-term potential (most likely as acquisition bait, to complement PostRank or Radian6?), overall, it's a pretty useless, Foursquare-style gamification of the worst aspects of Social MEdia.
In publishing, every day it seems there's a new upstart or three that's going to disintermediate (or even better, KILL!) traditional publishers, but with the exceptions of Open Road Integrated Media and, possibly, Ruckus Media Group -- notably, both are run by major publishing veterans and have partnerships with a variety of "traditional" publishers -- you'd be hard-pressed to name too many others that have had any truly notable impact to match the hype surrounding them.
Basically, Amazon one-upped Barnes & Noble's Read In-Store feature that allows Nook customers to "read NOOK Books FREE for up to one hour per day" in any of their 700+ stores, and put the exact same feature in every Kindle customer's living room via 11,000+ public libraries, without the physical and timing limitations.
There's an interesting comment buried in the beginning of the article, attributed broadly to unnamed Amazon executives, that perfectly sums up the true state of the publishing industry and Amazon's position in it: "...they played down Amazon’s power and said publishers were in love with their own demise."
Most magazines, print and digital, are little more than advertising platforms whose readers are defined as “targets”, valued in quantity over quality, and when the advertising revenue stream dries up, the magazines usually fold, readers be damned.
What I most like about Wendig is not that he has one foot firmly planted on both sides of the fence, strategically taking advantage of self-publishing opportunities, while also working the traditional channels. It's that he's a good writer and gives good story. When that's your starting point, business models are simply tools, not useless badges to prop up your sad little ego.