I suppose you could argue that the "beginning of the end" was when Jack Knight died. Or when Jim Batten stepped down as CEO (and died soon after). Or when KR moved corporate HQ to San Jose. Lots of "beginnings of the end."
This rumor is troubling for reasons besides the obvious. The editing operation was at the heart of what that paper did for several reasons (I'm sure other people can come up with even more):
1.) The desk's workload in relation to the staffing level resulted in a unique team spirit. It didn't take long for new deskers to buckle under the weight of it, and there was a fast realization that everyone had your back if you'd ask for help. And eventually you would. There was less pettiness and office politics and more teamwork than I've seen anywhere else.
2.) The emphasis on tight editing was a product of an extremely tight newshole, and the recognition that this labor expense resulted in other savings. Every inch counted, saving not only newsprint but readers' time. Even wire copy had some punch to it because any fat had been excised.
3.) The editing operation had a good grasp of the unique sense of place. Turnover was extremely high, but it didn't take people long to "get" the unique culture of the newsroom and of South Florida. It was not a generic newspaper. The readers often witnessed bizarre events in their daily lives, and the newspaper reflected that. It's hard to imagine a desk located anywhere but Miami completely grasping the absurdities of daily life in Dade County. That's no knock on the people in Kansas City -- I doubt a remote editing operation located in New York, Chicago or even Orlando would quite get it, either.