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Well plenty of people read newspapers at work and make personal phone calls. It's just not as easy to track as Internet use is.
It is only going to get worse as the workforce gets younger. The Internet has become such a part of young peoples' lives that it doesn't seem like a big deal. To me, surfing the Internet for a few hours isn't any worse than taking 10 smoke breaks a day or spending a time hanging out in my friend's cube.
I think it's very rare that anyone actually does work every minute that they're on the clock. They're just loafing in a different way now.
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"I have never made but one prayer to God, a very short one: 'O, Lord, make my enemies ridiculous.' And God granted it." - Voltaire
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