Here’s another article on the importance of emerging online literary journals. The article mentions the excellent Absinthe Literary Review, Jacket, Tatlin’s Tower, and Sweet Fancy Moses. (Thanks to Ed for this link, too.)
On edit: I didn’t mention that the article incorrectly says that Exquisite Corpse is out of business. I was kind of assuming that all of you read Exquisite Corpse and knew that already, but it’s worth mentioning just in case.