PGP may have broken down for the author, but it's still used in a lot of places. For example, to communicate with our bankers at work, every email has to be properly encrypted and signed - or it goes into a blackhole. The only way to exchange public keys(initially) is in person. Once that is done, new keys are provided from that person, and the WoT expands.
tldr; it doesn't work for the author, but it does work for lots of individuals and even more companies with secrets to protect.