The AP "reported" the following:

Olbermann’s popularity and evolving image as an idealogue has led NBC News to stretch traditional notions of journalistic objectivity.

This line in an AP news article is, in itself, stretching traditional notions of journalistic objectivity past the breaking report. This sentence is an opinion, namely, the opinion of the Giuliani campaign repeated as a fact by an AP news report. It also misspells the word ideologue.

Can the Associated Press, after this egregious breach of journalistic ethics, continue to cover the Giuliani Presidential campaign?

Of course it can. It screwed up. It should admit its error and move on. Keith Olberman, by the way, did not screw up. He labelled his Special Comment um, a special comment, not news. AP did not label its editorializing as opinion. The AP needs a lesson in journalism, as a person who had a double major in college, one of which was journalism, the AP is dead wrong.

Finally, for the record, a lot of journalists give their opinions. It is a bad thing imo. It makes them famous, always bad for reporters. But the AP may consider whether it is just as bad when other journalists, including their own, engage in punditry and pontification when they decide to criticque Keith Olberman.