Don't get me started on "pro-independence DPP" and "pro-unification KMT." Those are the most shallow, intellectually lazy ways to describe these two parties, and they're almost entirely misleading. And yes, I've been consistently disappointed by the Economist, otherwise my favorite paper, whenever they briefly lend their attention to Taiwan.
It's just... not a newsy place, by foreign bureau standards. AP, AFP, and Reuters used to have a reasonable presence here, but my understanding is that they've been down to a skeleton crew pretty much since shortly after Ma Ying-jeou took office. (I could be wrong; that's just my understanding!) I believe Forbes, WSJ, and BBC all rely on freelances here rather than post anyone long-term. NY Times has a reporter here, but he's only stationed here because he got kicked out of China -- his focus is still Beijing.
I think what it is is a perfect storm of little happening in Taiwan, a lot happening elsewhere, and belt-tightening all around as the media profession becomes less and less lucrative. That means personnel cuts and reporting the news that will bring in that golden calf of performance indicators -- website hits. Taiwan regrettably isn't on most people's maps. There is almost no chance of war and little foreign investment here, so while flipping control of the government in less-populous but better-known European countries will make headlines, in Taiwan people will just look at it and think "so what?" Unfortunately it just adds to the (possibly accurate) feeling that this is an unimportant backwater country that is too inwardly focused to be a part of the world.
The other thing is that newswriters want to tell a simple story. "Long-time ruling party with roots in authoritarianism that has failed to implement sufficient transitional justice that believes Taiwan is a part of China but China refers to the ROC not the PRC cedes major cities to previously poorly organized opposition party still struggling to overcome legacy of presidency plagued by corruption and bickering over renaming things that believes that Taiwan is a separate country from the PRC but no longer expressly advocates changing its name to show that " does not make an attractive headline. Taiwan's situation is far too complex for casual readers to gain any real understanding through a simple report or two, and most reporters aren't interested in doing the intellectual legwork involved in flushing it all out. You'll see that reporters are just as lazy when they write about other complex nations like Israel (yes, it gets a lot of coverage, but nobody goes into the complexities of everything). I think the attitude is "those who get it will get it; those who don't will just see a story about rocket fire."
I would love to help change this situation, but unfortunately all my applications to AP and AFP seem to have gotten lost in the mail.