Since its earlier warning to Drudge Retort, and since the pushback from the blogging community, little has been heard from The Associated Press about its demands that bloggers not crib its reports for their reports.
The closest anyone seems to be getting to an understanding of the situation in this media blackout is the New York Times, which has interviewed (and been refused interviews by) the interested parties in the dispute.
Essentially it appears The AP wants to protect the headline and first paragraph of its reports (these also being significant traffic drivers because Google and other search engines tend to crawl the headlines and the first words more aggressively). The battle is, it seems, not just about fair use, but about the traffic those words can drive in search.
But it's also clear (in The AP's non-comment) that there is much more to come in this dispute. And, as goes The AP, so could go many other media.