It was bound to happen considering the fact both FOX and CNN often tune into these often car chases.

Another attempt to pull in viewers and make dramatic breaking news when there really are none, there are probably dozens of such chases everyday in US.
Of course, it had to happen in Shep's hour, as most FOX News disasters do.
A rather flippant statement, one which displays little knowledge of the circumstances of the story, nor an understanding of the editorial decisions taken by both Fox10 in Phoenix and Fox News. I agree that car chases are used all too readily on American cable and local stations as material to fill out what may or may not be a slow news day.
To assert, as you do, that it was "another attempt... to make dramatic breaking news when there really are none [sic]" is shallow. Are you aware that this car chase was the result of an armed car-jacking in Phoenix? Are you aware that this car chase had lasted somewhere between 30 minutes and 60 minutes already? Are you aware that this occurred on I-10, a major artery that connects to Los Angeles in the West and San Antonio and Houston in the East? This was a legitimate story that had a genuine public interest.
A decision was taken to a) take the feed supplied by an affiliate and follow the story; and b) follow the story to its unfortunate and tragic conclusion. Yet a decision was also taken to switch to a delayed broadcast; this was a sensible decision to take and it is one that is made frequently when covering such events. This should be the basis of any discussion on this forum. A sound editorial decision was made. Unfortunately, and as James suggests, it would appear that the delayed feed was played out in the studio rather than on air.
For the record some of the commentators on this thread should look at the case of R Budd Dwyer. His suicide was shown live. Yet more importantly, in the hours that followed, whilst some local stations chose not to broadcast the event, two stations, one an ABC affiliate, the other an NBC station, took the decision to broadcast the event in full. What happened today is not a new development, borne of 24-hour news and the multi-channel cable, digital and satellite era, but rather one that occurred first in November 1963 with the shooting of Lee Harvey Oswald. What happened today was, for want of a better word, progress; that a news director can take an editorial decision to protect his or her viewers from scenes quite disturbing. Unfortunately, that safeguard failed.