Vagabonding: Hostels go upscale, Couchsurfing

Rolf Potts writes about the increase in popularity of hostels and couchsurfing:

...the couchsurfing phenomena is spreading like wildfire and, if anecdotal evidence counts for anything, most people seem to greatly prefer a local’s couch to a hostel.

The combination of the these two factors makes me wonder if perhaps the hostel’s long reign atop the cheap traveler’s list of preferred lodgings is coming to an end.

Will hostels of the future be simply more social versions of the typical hotel, with perhaps the open kitchen as the only real throwback to the hostel’s golden era? More importantly, does it matter? I for one have never liked hostels, they might be cheaper, but personally I’d rather pay more and get the amenities of the hotel or pay nothing at all and couchsurf with the locals.

But I know many of my fellow budget travelers swear by the hostel, what do you think?

He says he has never liked hostels. I don't think every traveler can pay more for a hotel (or wants to), and couchsurfing is different than hostelling.

What do you think?