What your forgetting are small businesses - not all of the people out there are managing large organisations, with large marketing budgets - $200 to you might be nothing, but to many it's a weekly wage.
I've found in my own experience that reporters would much prefer a unique article about an interesting topic then aboring and predictable press release - theres no doubt
PR's are good for links, but for raising the profile of a business I'd forget
PR's unless your prepared to pay a fortune for it to be hopefully seen.
Look at the guy who did millionpixel thingy - it cost him £1,000 straight away to market his business idea - luckily he was unique and made a killing out of this £1,000 but for many it doesn't work out like that.