AOL needs a new vision, and there have been plenty of suggestions. Business Week suggested selling AOL to Microsoft (and integration with its MSN service). Dave Winer and Doc Searls too have made their own thoughts. New York Times too has its ideas.
I think the easy way out is to contemplate selling AOL. That would be the wrong thing to do. I think what they should do is get Steve Case back and let him run it. There are few who understand AOL and its strengths better than him. As Dave Winer says, just as it is hard to imagine Apple without Jobs, it is tough to imagine AOL without Case. Throw Case a challenge. Give him 2 years.
In the current environment, my guess is that AOLTW will do is clean up AOL enough to line it up for a sale or spinoff in a year.