Isn't anybody selling and making new content? Is the "biz" now all about recycling and promoting recycling?? You can only sell the same "Schtick" over and over for so long. So NO, the World is not ending, it is just getting saturated....
When 10 affiliates promoted FTV girls it was good, now when 1000 affiliates are doing the same thing, guess what??? The saturation point has been reached.
So, change your model and make something, or choose to promote something which needs promoting and not stuff which is promoted to death...
The rule of thumb is 50 affiliates per site, if there is more, move on to something else.