Let's see, before the Internet--
We had ridiculous story claims such as "Bill Clinton's trip to Moscow" just for starters. Misinformation and deliberate scathing propaganda has been around in oral tradition and the printed press. The goal is to look beyond that, be information literate, (and also be media literate) and fact check. I'd especially be wary of long Emails, etc.
So no, I don't think the Internet makes things worse. There would've been say a "9/11 conspiracy" threads whether on the Web or the printed word. In this day and age, people should read and evaluate information. When I read a blog, I'm always paying attention to linked stories and then judging the quality of that information and source. When I read news related to politics, I read between the lines to see if there's spin or typical "rhetoric" that may be given by a political party. I look for serious investigation journalism resources that do stand the test of time. The internet allows and provides access to much more information and a diversity of opinions--we all have our own prejudices in terms of politics, etc. but we at least look for reliable facts.
Of course, I'm a librarian. And I do find many times to at least make an effort to teach students how to critically evaluate--when more and more are literate and understand the medium of the Internet, many will look beyond and recognize misinformation, or at least be skeptical enough to not simply accept what's in front of them, and hopefully rationality will most often take over.
