Very well thought out, and excellent explanation and reflection.
I have explained the answer time and again at shows, and on here. No one wants to hear them because at the end of the day, especially with programs going under, they are greedy. As one program owner told me... making custom banners, and putting in the work for the affiliate that 'may' send one sale is worth it to them for $35 PPS.
So supplying free hosting, content, domains, to ANY affiliate whether proven or not has been the greedy way to doing things. Now the market is flooded by every beer money barons and surfer who just had to sign up and got all your content for free.
Instead, you should have had minimums, and requirements, and raised the bar for entry. You can still, over time, solve this. However, greed and short term thinking combined with this economy and companies on the verge of going out of business, will never change.
You are not going to, easily, put the genie back in the bottle. Year's ago, many program, cut their own throats.
Now reep what you've sown. Enjoy the tailspin.
