Ever Hear of "Occam's Razor"?
The New York Observer has an entertaining piece featuring a Time Inc. attorney who's specialty is (was) Libel Law. All sorts of reasons are presented as likely behind the disappearance of libel suits against big media are offered, and I think some come close, describing some likely ancillary reasons, but it is almost as if they're dancing around the obvious one.
Think about it for just a moment, What's your first thought when someone besmirches your good name? Answer: "Will anyone believe them?"
Credibility in the mainstream media is seen as MIA by most people. Combine that with the fact the media doesn't have a lock on the flow of information anymore and people can get their side 'out there' (mentioned in the linked article) and you get a drop in people who care enough about lies the media writes about them to take legal action.
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