Wired News report that they will no longer be capitalizing the words "Internet", "Web" and "Net":

But now, by lowercasing internet, web and net, Wired News is simply giving the medium its proper due.

I will continue to capitalize these words, because I agree with this view:

And the Web isn't a medium, either; but rather a place, an environment, a collection of locations. Like a marketplace, or a commons.

More info:
· Slashdot.org - It's Just the 'internet' Now?