A closer 2008 election is one possibility. Most of Barack Obama's success came as a result of using the Internet to gain supporters and donations. Kill the rise of social networking, and you turn Obama into the next Howard Dean - lots of hype, especially on the Internet, but not much in the way of results. This means that Hillary Clinton breezes through the Democratic primaries. As for the GOP campaign, Mike Huckabee and Ron Paul would suffer, as they used the Internet and social networking to reach out to young voters. Without social networking, Huckabee remains a generic Christian Right candidate like Sam Brownback or Duncan Hunter, while Ron Paul's appeal remains limited to the far right. With Huckabee out of the way, maybe Mitt Romney can put up a better fight against John McCain? Sarah Palin, meanwhile, is butterflied away, as the GOP doesn't feel the need to run a woman as the running mate in order to grab the feminist voters who were supposedly alienated by Hillary's loss (a move that, as we all know, backfired miserably in OTL). However, there will be a lot of pressure to have a social conservative like Huckabee as the running mate, as the Christian Right didn't really trust McCain (a liberal/moderate on immigration and social issues) or Romney (a Mormon who flip-flopped on social issues).
In this alternate 2008 election, the Republicans have a realistic shot at the White House, as they're not facing the Obama Hope Machine, and they have a running mate who most likely isn't completely bonkers like Palin. However, the GOP primary is bound to be uglier than in OTL, as Romney will be in a position to, if not win the primary outright, then at least make it harder for McCain, which is bound to drain his funds significantly going into the general election. Also, Hillary won't have the crazy Muslim or birth certificate rumors dragging her down (although the scandals from Bill's administration may be brought up), and even if the Republicans somehow hold onto the White House, the Democrats will still increase their Congressional majorities. And if the economic crisis still happens as per OTL, the GOP's chances go down considerably. Most likely consequence: President Hillary Rodham Clinton.
As for non-political changes, you've got less media hysteria over the dangers of the Internet, for one thing. I don't know about higher productivity, as from what I've heard, employers have been using Facebook and Myspace to keep tabs on workers. Underground music doesn't gain as much recognition, as the bands don't have Myspace to get listeners.