Earlier quoted context omitted.
I also want to present the counter viewppoint - http://arstechnica.com/business/news/2010/03/why-ad-blocking... Newspapers were dying because nobody wanted to pay for news, which they could get for free at Google News. Newspapers were told to suck it up and instead move online - to an ad supported model. No more ads. I dont think the newspapers are the bad guy here.
Newspapers are dying because they are staffed to heavily, not because people don't pay. Now look at smaller publications such as Gawker, hyper local news. They are doing just fine. Wired sold almost as many iPad versions (75.000 at 5USD a pop) as they did paper version since they launched it. Thats excluding advertising. Clearly there is a market for news. It's just not going to be of the NYT kind.
To have a staff of correspondents reporting around the world isn't cheap. But I think it's worth it.
I think in order for newspapers to survive, people have to learn that they need to pay. Advertising alone isn't going to pay the bills.
I personally think that charging people money for things on the internet isn't such a crazy idea. ;-)