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As long as I've got niched traffic for sale on my sites, there will be a line up of programs/paysites that want me to send it to them.
No amount of inhouse traffic is enough to cancel out affiliates. For every company getting their own traffic and not wanting affiliates there is 3 out there dying for my clicks.
Also to add, I've sold about 40 ad spots to PROGRAMS looking for affiliates in the last 8 weeks, I think in this economy, and the problems many affiliate programs are having, to sell that many ads consistently, tells me its not so bad and that programs are still looking for affiliates
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