Jeffrey Tucker at Lew Rockwell argues that the Internet and email are increasing children's literacy. He might be write right. He mentions a thing called "Pooh Blogs," which, based on a quick scan, appear to be blogging for children. I'm not sure why a blog needs to be geared toward children (maybe they scan out inappropiate spam in the comments boxes), but the idea of encouraging children to blog as a means of developing their nascent writing ability intrigues me.
From Tucker's conclusion:
Far from killing literacy, email is producing the first fully literate society in many eons, perhaps ever. Never before has it been so necessary that every person in the whole of the population be capable of writing well. For the first time in history, people are practicing the craft on a daily basis, even from the youngest ages. The sooner they begin, the better.