It seems to me that if you are doing work for a company, you should be compensated. The internship market is even getting competitive so many organizations are being forced into a new way of doing internship programs. Also for some interns have been looked at as just hired help. Again many organizations are doing much better and there are some outstanding programs out there with compensation. The thing that interns and employers must remember is that the payment is truly in the experience.
Pay is great but the experience,training and skill building is the real compensation.
Many internships pay but still have interns only doing administrative work. This is not right. Internships are like apprenticeships or training programs. Interns should be able to leave an internship with a new or enhance level of skills, new ideas, and a better understanding of that particular career field. What I suggest to interns is to make goals of what you want to accomplish and learn at the internship and make sure you achieve them.