The ever-eloquent Mark Evanier writes about the strike situation in a number of blog entries and explains it way better than I ever could. I highly recommend you check it out if you're even remotely interested in what's going on.
I am, however, getting really sick of how the mainstream media is presenting the writers as the villains why you won't see new episodes of Letterman or how they're disrupting location shoots of Desperate Housewives. Compared to the eight-figure salaries many a producer is making, the writers asked for a very small increase (8 cents per DVD—up from 4 cents—and a small percentage of Internet and future media sales). Heck, the Writers Guild dropped the DVD issue and the producers still told them to get bent.
So walk on Writers Guild. You more than deserve what you're asking for and shame on the producers for making things get to this point.