Associated Plagiarism?

According to this site, and this one, associated press has admitted to taking large quotes from websites and not citing the source 'as we don't credit blogs'. This is the original article which discusses the issue (I think). Here's the Instapundit links

If true, this is outrageous - fair use is fine, in scientific papers much use is made of quotations, but presenting the work of another as your own? Not good.