Web 2.0 'neglecting good design'

I'm a little confused over this artical I was under the impression that web 2.0 was all about the user and the lastest W3c Standards... but here's an artical debating that point:

From BBC NEWS: http://news.bbc.co.uk/2/hi/technology/6653119.stm

"Hype about Web 2.0 is making web firms neglect the basics of good design, web usability guru Jakob Nielsen has said.
He warned that the rush to make webpages more dynamic often meant users were badly served.
He said sites peppered with personalisation tools were in danger of resembling the "glossy but useless" sites at the height of the dotcom boom.

User tests
Describing Web 2.0 as the "latest fashion", Mr Nielsen said many sites paying attention to it were neglecting some of the principles of good design and usability established over the last decade.
Good practices include making a site easy to use, good search tools, the use of text free of jargon, usability testing and a consideration of design even before the first line of code is written.
Sadly, said Mr Nielsen, the rush to embrace Web 2.0 technology meant that many firms were turning their back on the basics.
"They should get the basics right first," he said. "Sadly most websites do not have those primary things right.""