Patti (and to anyone else interested): I think the networks believe the soap genre has lost its traditional, core audience, the stay-at-home-wives-and-mothers, who are now en masse in the workforce. Also, the networks feel that there are not many up-and-coming viewers for soaps. I grew up watching soaps with my mother and grandmother while I played with toys on our living room floor or reading comic books or waiting for reruns of GILLIGAN'S ISLAND to come on. Nowadays, young people are more than likely to be planted in front of their computers with Facebook rather than waiting for the next episode of DAYS OF OUR LIVES to air. In other words, young people aren't being "trained" to watch soaps like previous generations.
Also, networks are looking to cut corners anyway they can in this economy. Budgets are being slashed and even Susan Lucci had to take a paycut. It's cheaper to put a game show (one standing set) or a talk show rather than a soap with a cast of thirty to forty players (many of whom aren't even on contract but on recurring status) and multiple sets. This type of thinking has even spread to primetime television - you can bet your last dollar that the industry is paying close attention to how well Jay Leno's new, primetime talk show is doing in the ratings. If it succeeds, well, you'll probably start seeing fewer hour-long, dramatic programs on TV...
However, I still think, no matter what, the soap industry has brought a lot of their problems and turmoil on themselves simply by treating the viewers with contempt. I watch AS THE WORLD TURNS everyday, but I cringe at how mediocre most of the writing is compared to what is was in its Golden Era (i.e. when Doug Marland was headwriter!). It's very plot-driven and the characters act very inconsistent. Most of the soaps used to be produced in NYC and producers cast roles with experienced, seasoned actors and actresses from the theater community - remember all those great actors on ANOTHER WORLD? Now most soaps are produced on the West Coast and it seems like the casts are full of beautiful, vacuous people who have probably never seen a play much less been in one.
I wish we could find the daytime equivalent of a writer like MAD MEN's Matthew Weiner or Joss Whedon or David E. Kelly or ...
P.S. I don't hate all reality programming. I never miss THE AMAZING RACE or PROJECT RUNWAY and I even, for the first time, voted for an AMERICAN IDOL contestant on AMERICAN IDOL this past season (Adam Lambert!), but I do think most reality program is garbage.