Loren Feldman, the puppetmaster behind the puppet Shel Israel video blog, is moving on.

Puppet Shel Israel is a sort of Triumph the Insult Comic Dog for new media, parodying “new media expert” Shel Israel, while scooping him with entertaining interviews, like this discussion with Digg’s Kevin Rose:

While Loren’s puppet has been scoring the interviews, Israel has been seeing his career go downhill and venting his frustration over the puppet:

“He has managed to annoy, distract and embarrass me,” writes Israel. “He has confused people by usurping my site.”

Now, in an open letter to the real Shel Israel, Feldman explains why:

When I first started my career, you made it a point to bury me online, and more importantly back channel as well. This is a fact. You and your crew went out of your way to take food off my plate. I never forgot that, and now you have something you’ll never forget.

People like the puppet more than you because he is more real than you are. More honest than you are, smarter than you are. More human than you are. People want the Shel puppet to win. The same can’t be said for you my friend.

And now it’s done, my little experiment with Social Media. I beat you with your own tools, in the arena in which you bill yourself an expert. You are an amateur Shel, an amateur, always remember that.

The conflict between Israel & Feldman highlighted the pathetic side of new media, and especially tech coverage. As commenter Roebot notes, “Ridiculous, This f*n post made front of Techmeme?! A bunch of squabbling self-important, yet generally inconsequential, wankers hits the front page of one of the most relevant tech news sites? I’m embarrassed. I need to switch industries…”

While he may be moving on, Feldman is unrepentant, even triumphant.

“I could give a shit less what people think,” writes Feldmen. “I get mad recognition, and it means nothing because most of you are too stupid to even understand what I’m doing let alone be sharp enough to critique it. Im done because there is nothing left to do to Shel.”