I read both this book and Linda Weintraub's "Art on the Edge" at the same time. I liked both very much and highly recommend both of them to get a full picture of the modern art world.
Weintraub clearly explains the concepts and theories behind the avante garde art of the 70s-90s, including Jeff Koons, Serrano's (in)famous Piss Christ, etc. Tom Wolfe cries that art theory has taken over art (which necessitates people like Weintraub to explain what's going on), that art is controlled by a clique, that some artists just want to shock the masses and to please the clique, and that the masses need not apply. I think these are very valid points, after all, Vanessa Beecroft posed 20 nude or bikini-clad babes in the Guggenheim and Heilman-C showed actual people having sex (See the 1998 review article in the ArtNet website).
But Tom does not discuss the larger issues: "Is this art? What is art?" That, combined with the fact that Wolfe wrote the book more as an opinion piece rather than the more journalistic approach he took in Electric Kool-Aid, forced me to take a star off.
It should be noted that Tom criticizes the art world's need for something new, where he was the "new" thing in the journalistic world in the 50s and 60s, in the nonfiction world in the 60s and 70s, and in the fiction world in the 80s and 90s. It's like the pot calling the kettle black.
It should also be noted that Tom was part of the art world himself, as he has exhibited his caricatures in NYC galleries. Caricatures, of course, are downplayed in the fine arts world. Keep this possible bias in mind as you read this book.
Nonetheless, the Painted Word is a fun, quick read that should make even the most-hardened boho artist think.