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but as a summary -
Its still useful in many ways, especially if you hit the inbox at the correct time.
Its cost effective, cheaper than print and environmentally friendly.
If you target specific users with specific emails that are more relevant to them you will get better returns
stay away from purchased lists, but instead build up your readership with people who are actually registering interest in what you do.
Test against spam filters and avoid sending out too many emails.
Be careful of the language you use in the emails as the filters are quite sensative.
but I think most importantly, measure everything.
You should know who is coming to your site from your emails, know who is converting to sale and if its actually worth the investment.
If not, then stop and review the data, strengthen the areas of the email and site you feel were not working for you and start again