Tony Snow has a firm grip on reality: 
On the newspaper business: “The newspapers have to realize that they are a niche market and the one thing they can do better than anyone else is analysis. As a guy who spent the majority of his career in print media and loves writing, it scares me that newspapers are in the state they’re in.”
More at the link.
And yes, I put this under the technology tag… what else but technology…(Along with the newspapers themselves) have brought things to this state?