In other words, we are toast. Sad because AP was once one of the original newspapers/sites with journalists rather than editorialists but that ship has sailed for most if not all of those outfits. It's hard keeping up with the Kardashians/Jones, whatever.
You're missing the point of the AP, and it's actual composition. I worked at a daily newspaper most of my way through undergrad and knew the ins and outs of the AP better than most.
The main use of the AP was to get international news to outlets who couldn't afford to place staff in places further away from their own location. A great example is any international war, though even big national events (9/11 being a great example) are also places where AP stories are valuable.
The AP carries very little editorial content. Yes there are a few editorial writers who publish there but the volume from them is minimal compared to the objective news reporting. Some people like to claim otherwise but that is from those who aren't actually looking at the body of work on ap.org.
Unfortunately the newspaper model is indeed dying. Many of us are lamenting it and we're not sure what solution could bring it back. Printed news was supported by advertising, both display ads and classified ads. In the 90s your local daily paper likely had 4-8 pages of classified ads, every day. Now the majority of that is on craigslist or facebook. On Sundays your paper had full color printed advertising inserts from over a dozen retailers; many of those retails have since gone out of business and many of the ones who remain don't advertise that way anymore. Online subscriptions can offset a small part of this, but only a small part. Online advertisements are blocked by most readers' browsers, so that isn't productive for newspapers in many cases either.
The tabloid and editorial "journalism" you refer to is successful because it does a better job of selling crap to its audience. Don't confuse it with the professionals at the AP.
