I think e-mail is still somewhat useful..as you point out in your blog it is another avenue or medium with which one can establish a relationship and build trust. Thanks for the blog..
Blogging, social networking and email newsletters all have one thing in common, they fall under the umbrella of Internet marketing.
(Coverage of the BlogWorld conference continues at WebProNews Videos. Keep an eye on WebProNews for more notes and videos from the event this week.)
In the session "Internet Marketing for Smart People," the panel discussed the various ways to reach an audience online.

Chris Brogan
Brian Clark, founder of Copyblogger, said, "there's always things and people you can learn marketing from."
Chris Brogan, President of New Marketing Labs, said, "email marketing is far from dead."
Darren Rowse, founder of ProBlogger, started email marketing for his dad with the intention he thought RSS would kill email. His email marketing has been successful and now they forcefully push it. Email allows them to connect and engage with customers.

Darren Rowse
Clark said email is a different environment than a feed reader. It builds trust and it takes a lot for people to hand over their email address.
When it comes to blogging, Rowse said the more you can get your readers to interact with each other, the more you as the blogger become the match-maker. You can build relationships with your readers. It's important to allow them to interact and connect. Give them as many opportunities as you can to do this.
Brogan said community is a privilege, not a right. It's a whole lot easier to market when you don't have to. Smaller blogs that have great content are sometimes more effective than mega blogs.
When it comes to the recent FTC guidelines for bloggers, Rowse said he had been expecting rules for a long time and there is no reason why endorsement rules would not apply to bloggers. The FTC rules validate bloggers as media.
WebProNews Video reporter Abby Johnson contributed to this report.
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email
I think email, as dated a communication tool as it may be, is still a more effective marketing means.