digital natives, eh? interesting take on public identity and communications. Btw, Clay Shirky is right, very smart man, have been reading him for years.
I like the phrase invisible audiences by Dana Boyd. It means that we all become reputation management experts, some better some worse. And that's not a bad thing as it decentralises the power of those who use to control the channels to audiences.
The shocking honesty and transparency will have another effect, people will stop being shocked by things that used to be shocking by virtue of being private. such transparency is disarming provided it's consistent. This will evolve even further. But somehow I don't think the notion of privacy will die out. It may be the offspring of the first digital natives who will crave it, just like generation after the hippies. One thing is certain, those online will develop a strong sense of individuality and the empowerment that the environment affords them.