http://www.latimes.com/sports/la-sp-sondheimer30-2008jul30,0,2723763.column
I'm not familiar with the ins-and-outs of basketball recruiting, but I don't agree with the premise that the AAU tournaments aren't useful recruiting tools just because coaches aren't using them to find new talent. It does seem crazy that everyone - spectators, teams, and recruiters - are all paying into the pockets of the sponsors that run the tournaments.
Seems like if that was the only purpose put out there for the tournament, to get discovered, the writer has a point. However, there are likely many other reasons to play in the tournament and to attend as a coach.
Is it the best or only option for getting discovered, probably not. But it is one step in the process. If a player is consistantly making noise at these tournaments, hard to believe coaches would not eventually figure out who he is.