Porn in general is suffering, Blu's new site is attracting a lot of disgruntled flak. That doesn't mean that their business isn't as successful as you say, even though
Broke Straight Boys is full of updates composed of material that looks vintage, or even retro. Nu, for god's sake.
Did you see the episode of The Office where Ryan takes Michael to his business school to give a master class, in order to up his grade one GP? Killing. Ryan's deadpan introduction of Michael includes a prediction that the firm will be obsolete in five years. Elyot, try to see that episode if you haven't already. I think it might have been season 3. Use it in your presentation man, hilarious.
If I used the D&E/Blu guys we all love so dearly as model for my Marketing Class, I'd include in the description the fact that they are receptive to feedback from their clientele through a clever series of channels (a lot of which is Stephane's work), including a fairly vibrant and imaginative online discussion group where they get free consultancy and market research from a bunch of insightful and intelligent subscribers. They responded to the idea from one of the members to hold auctions of cummy laundry, they've changed certain procedures to do with the shoots arising from forum discussions, suggestions and complaints. Management still makes a lot of mistakes: the site, except for Stephane's texts, continues to be pretty illiterate, but while very uneven in quality, the product is friendly, sexy and sociologically fascinating. And better than it would be without yours and my input.
I think you misread the reasoning behind the draft to get one of the models back for more shoots. You thought it was pity and/or PC outrage. I think it was mostly because the model is hotter than a lot of the guys who get through to the futon and keep coming back. There's been so much hype about Josh by now that D&E would be mad not to try to get him to return for more work.
(tried to find the Business School episode for you on YouTube, no luck, but did find this:
http://en.wikipedia.org/wiki/Business_School_(The_Office)/ .)