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I think avs is still marketable, but only if your selling avs membership, still works for me, to a point. On a big scale, I'm not so sure. People use to make money with avs sites by upselling the avs members, but thats pretty much dead, least the traffic is not like it use to be, not even close. And as GreenGuy said, it sure is tougher to sell the memberships, The CC companies really clamped down.
Then again, starting a premium AVS is very similar to a paysite, could be a good way to test the paysite waters without a lot of cash. See if you have what it takes before spending a ton of money on a paysite.
ronnie
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