I read a blog post earlier this week that suggested WA doesn't recommend AIO any more. Is this true and what is the alternative?

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AbieAJ Premium Plus
WA recommends the SEO framework.

However if you are already using AIOSEO, then you can carry on using. as perhaps you may want to have a new niche site, you may then use the SEO framework, save messing up site (Kyle's recommendation).
AbieAJ Premium Plus
You may also see Kyle’s comment on below resource discussion thread
jghwebbrand Premium
AIOSEO is still a good SEO plugin, it's just that they advertise too much about upgrading and that was confusing for beginners. They kept asking if they had to upgrade.

We still use AIOSEO and use the features they offer.

Be aware that when SEO plugins are changed it is necessary to install a plugin that will transfer your existing meta descriptions if they were customized.
feigner Premium
wa now bundle 'the seo framework' seo plugin with new sites...
if you are already using aio seo plugin then there is no reason to change it...
i tend to use seopress and find all the new features very good...
but it is down to personal choice and what you want out of a seo plugin....
Fleeky Premium Plus
Tried many
SEO framework is the best so far

It is pre-installed on all new websites
Simple, fast, reliable

Good luck
DianeScorpio Premium
Hi - WA now installs SEO Framework for all new websites. Apparently, they were fed up with AIO trying to push the pro version and also implying that you had to use Monster Insights for analytics.

However, it's your choice, I personally still have AIO installed, but have to say I don't really use many of its features. I ignore the SEO scores for each post etc.

Some people use Yoast or RankMath or other options.