ITV are still more than capable of making decent programmes, The Street and The Royle Family are made by Granada. Presumably they were rejected by the ITV network centre though, too adventurous for their liking.
It's been all downhill for ITV since Thatcher got rid of Thames and replaced it with Carlton IMO, a slow downward trajectory though still with some real quality coming out of Granada like Cracker and Prime Suspect through the 90s, then this decade almost unadulterated shite, though this year ITV have still had some good stuff, like the Stockwell reconstruction and Whitechapel, and it's not exactly an achievement but their news once you get past their laughably sensationalist style often contains more journalism and less PR puff than BBC1's efforts.
I'd be surprised if ITV went bust, though I wouldn't be surprised if a foreign broadcaster like RTL or more disturbingly Murdoch bought it. Branson I reckon's a possibility, imagine the publicity if Virgin saved Corrie for the nation

It'd also be seriously powerful leverage for Virgin Media in their contractual disputes with Sky.