Nice post again, happygeek! I could not agree more.
The media has certainly played a larger role in any perception fluxuations for Twiter than the company or application itself.
Is it not strange how we as humans go through the same process everytime new technology (or something reletively innovative, i.e. Twitter) comes into being: Oppinion leaders adapt in early stages, mass population amused by the new "toy" and starts getting involved, there after launch success and low and behold, someone finds a way to use the new technology/toy to exploit some or other weakness for selfgain. And at this very moment the media (now bored with covering a successful Twitter) tries to create (normally very sensational) doubt about it. In retrospect, while frustrating on a day to day basis (which is our perceptions) it does cause communication and therefore we have the opportunity the clear the air, a very healthy (and necessary) exercise.
So, Twitter = Yeah! and Media = *pinch of salt