I don’t understand this claim: I get more readers now than I did when I was at ScienceBlogs–and ScienceBlogs had two features that increased my page hits. First, there was the PZ Myers and Ed Brayton effect: so many people visited these two blogs that the various sidebar links (blogrolls, recently posted, etc.), I received many visitors whom I otherwise wouldn’t have. Second, in terms of page hits, we were encouraged to put part of every post below the fold, so as to increase the number of page views (admittedly, with the rise of the social web, not using this strategy probably doesn’t significantly lower my page views, but it did raise page views back then. What is this ‘iPhone’ you speak of?).
If you use social media somewhat intelligently, the two, rather than competing with each other, help each other’s traffic.
Anyway, seems this particular corner of the bloggysphere is doing just fine (and thanks for reading!).