Sounds like Trump is saying that NATO members must pay the US for its defense capabilities.

Sounds like the end of NATO.

Why would Trump be trying to break NATO apart?

Well, NATO's existence began as a bulwark to the threat perceived by the USSR, which has not existed for a few decades now. So now it is just a bulwark against Russia, which has been a valued trading partner with most of Europe for the better part of three decades.