Nielsen ratings outdated?

in this day and age of the internet, tivo, and itunes, is the nielsen ratings system outdated?

Used to be we had to shape our schedules around our favorite tv shows, forgoing a night out for an episode of our favorite tv show.

Now a days, we can have the freedom to record our shows on DVR or download them from the internet, watching them at leisure. this enables us to not be chained to the tv anymore and do something else.

The Nielsen ratings system doesn't take these into account, or doesn't to my knowledge. Is this system now archaic?

The ratings now take into account data from TiVO, cable companies, satellite compaines, etc.

So they're still pretty accurate and relevant.