Two different points in your post:

On the issue of blurry photos, I agree - I don't like them either, though there are limited situations where blurring can be appropriate to the subject.

On the issue of digital killing "the magic of photography", I completely disagree. It has expanded the capabilities of photography & opened photography up to many people who otherwise might have been intimidated by the technical challenges of traditional photography. And digital software like Photoshop allow you to explore creative techniques without the complications of a darkroom, as well as opening up unlimited possibilities that go way beyond what you can achieve in any darkroom.

Digital photography has no more ruined traditional photography than digital art has ruined painting. In fact, if you look at the quality of the images in the Photography Gallery here at Renderosity, I think it's generally very impressive, compared to the quality of art in the various 3D galleries, which tends to be very crude & amateurish for the most part (with quite a few exceptions that are outstanding, of course). You may feel nostalgic for the old methods & technologies & choose to continue to use them if you want to & that's fine, but art, like everything else, marches on & changes & skill, creativity & imagination can be applied to any medium...