Things do not look good at the online encyclopedia. I addressed some of the relevant issues, at a very broad level, in a paper I gave at Wikimania in July. But things have gone very badly wrong very fast in the past ten days or so.
Rather than go into details myself, I’ll just link to a blog post by long-term Wikimedian Liam Wyatt: “Strategy and Controversy”. As he puts it, “there is a battle going on at the top for its soul.”
For more, see for instance Pete Forsyth’s blog and his posts “Wikimedia Foundation Ousts Community-Elected Trustee” and “Grants and Transparency: Wikimedia Foundation Should Follow Standards it Sets”. Or look at two stories from the Wikipedia Signpost (the site’s own internal newspaper): “WMF Board Dismisses Community-Elected Trustee” and (especially) “The WMF’s Age of Discontent”.
Then if you really want to go down the rabbit hole of Wikipedia politics, check out the wikimedia-l mailing list for December (start here or here and follow the threads) and for January (start here, here, and perhaps above all here). Then look at Jimmy Wales’s talk page on Wikipedia (this is how it looks right now), this article on one of the new WMF Board members, or this talk page on Wikimedia’s “meta” wiki, about the “WMF Transparency Gap.”
I said back in July that the WMF (an educational charity, after all) “now finds itself in an climate dominated by for-profit corporations that claim to be able to offer the same or similar services as it provides, but more efficiently and effectively. It doesn’t know whether to remodel itself along the lines of these commercial competitors or keep closer to its historic roots.” The conflict between these two tendencies is today well and truly out in the open. The only question is whether the battle has already been lost.
Update: The best and most accessible summary of things to date comes from William Beutler’s post, “The Crisis at New Montgomery Street”.