Stephen King talks about writing and short stories in the interview with Borders. The short story market is not very big. There is the possibility that ebooks - and ideas like Kingle Singles - could help bring it back. Stephen King says some novelists have lost the ability to write short stories.
King also talked about short story length. He says sometimes he starts out writing a short story and it balloons into a novel. King also says, "There really is that length of 22 to 25,000 words that's a 'twilight zone' for writers. It's too short to be a novel but it's too long to be a short story." Take a look: