And then he posted the exchange on his website, without censoring names or other details. Eeek. Go read it, it's more interesting than my own summary.
The Atlantic then fired back not one but two articles on this matter. One of these sort of generally discusses journalism in the past and now and tries to explain and break down the math...honestly, I skimmed that one, because I didn't like the writer's voice and it seemed a defensive, poorly organized, and hastily written piece to me. The other piece was far clearer, and takes something like the opposing view to Thayer's: working for exposure can be valuable. That's a good 'un, really good reading.
I found this whole exchange extremely interesting.
A couple of years ago, I was talking to my mother about blogging, and - I'm distilling a complicated conversation - she said it seemed foolhardy to write my blog for free, to give away my words, when after all I'm trying to make my living from words. Her profession is very different from mine, but she also makes a living from words, and she noted that she would never, ever write for free. Doing so devalues your work, she said, and that means that the next person to try and buy your work has evidence that she can get away with paying you less. If you don't value your work, she pointed out, no one else will.