Overall I think we're better with it, but it's not so clear cut. The distribution and access to information and ability to easily communicate with people the world over makes it an improvement to our civilization and essential to a democracy in this day and age.
But there are a lot of costs.
Someone earlier mentioned privacy, and right now there is next to none.
Internet crimes are incredibly scary, especially with the ease that an identity can now be stollen and a life ruined. Hell, even the intensity of cyber bullying, at least the kids used to be able to escape that **** at home or by hiding in their room.
It has made people lazy. To do research you used to have to actually get up and go to a library or, you know, talk to people, now everything is a click away. I think it is taken for granted by a generation that doesn't know anything different. But every generation that lived in the time before something came along can say that after the establishment of the new technolgy. And get off my lawn, damnit.
Socially, while it gives you the ability to keep in touch with people all over the world, the face to face meeting is disappearing. Why go out and converse with the real world when you can do it from a keyboard and behind a monitor? Damn world is scary, there are actual people out there, they might discover me for who I really am.
And the slow death of newspapers, but much of that is the fault of newspapers and their inability to figure out how to make it work -- giving the product away for free for much of the last 15 years sure didn't help.
Also we are more and more living in an ADHD world where people are thinking less and less for themselves and prefer to regurgitate the last thing they heard as the God's honest truth without looking into it for themselves. While there have always been people like this, it is a problem that is exacerbated in this day and age, the Morgan Freeman rant was just the latest example. Yes, information is passed along easily, but how many people actually THINK about what they are taking in and forming their own educated opinion on that information? The world is full of sheep and it is much easier to shepard them online.
Lastly, our overall relliance on the Internet and technology. If it all goes poof, we be ****ed. All of our pertinent information is online and we have become conditioned to communicating through this one medium. I think we'd have a much more difficult time transitioning back off of it than we have transitioning to it. Can anyone at a paper now imagine going back to the pre-Internet days for your wire service or sending your story in from the road?
So yes, it is better with it, but we better hope we do not lose it.