Blaine performs close-up magic on the streets. While it may just be a conflict of semantics, many would argue it's not street magic. Street magic, in the traditional sense, is a whole different sub-culture where if you aren't loud, flamboyant, big and bold, you typically won't eat at night. It's a living. The aim of street magic in this regard is to attract a crowd and ultimately get paid for your entertainment through spontaneous tips. The style of magic used to do so drastically differs from the intimacy of close-up magic which David Blaine made popular. You typically cannot attract a large enough crowd who'll want to pay you by quietly presenting Coin Bite the way Blaine did on television.
Blaine's success wasn't due to street magic. His success was ultimately due to television. His approach to magic was refreshingly different for television audiences, because people never really saw how much magic can affect a spectator before. Before his time, magic was always a steady series of shots of illusionists onstage. Blaine made the intimacy of close-up magic popular by putting more emphasis on animated spectator reactions. Getting reactions on the street is one thing. Getting paid on the street is another. That, I believe, is the quintessential difference between a busking street magician and someone who performs magic in a similar fashion Blaine does.
This, of course, doesn't take anything away from Blaine. He single-handedly reinvented the way magic was perceived in the modern era. I prefer the intimacy and directness of close-up magic, and I enjoy surprising people in spontaneous settings with it. I care more the personal relationship I build with an audience through magic. This, however, really isn't a new idea or philosophy. It's just close-up magic. Professional close-up magicians were doing the same material Blaine was for decades prior to his first television special. Blaine's success wasn't a new form of magic-- it was simply a new idea of bringing the craft to an MTV-era audience. And daaaamn, it worked. It made magic cool again.
It's important to recognize though, that it isn't really street magic, where a magician's success is ultimately determined by his bankroll at the end of the day. Regardless, as SlightedMind pointed out, it's likely that sites like Penguin, Ellusionist, and arguably even T-11 will continue to bastardize the term because of marketing...
RS.