I take a middle position.
There is an important sense in which indexing has been oversold. Indexers have been told that they will do better than stock pickers. I don't buy it. I think that effective stock pickers are always going to do better.
The other side of the story (in my view!) is that it is only a small percentage of investors that possesses the skills to pick stocks effectively. I believe that the majority of investors really are better off in indexes.
I am a big believer in indexes (my writing is aimed at the average person, the ones who are unlikely to do well at stock picking). But I think indexing is being given a bad name by those overselling it. Indexers have been told that stock pickers cannot do better and as more and more evidence comes in showing that they do, people naturally become disillusioned with indexing. It's not indexing's fault! It is the fault of people who stretch the truth in their efforts to market indexing.
Indexing is wonderful. But it is what it is. It is a simple "good enough" strategy for the millions of middle-class people who do not have the skill or inclination to do the research needed to pick stocks effectively.