I agree with Paul Mulshine that blogs will not replace newspapers, but his Wall Street Journal article does contain an indication of why so many newspapers may be in trouble: contempt for the customers. An excerpt:
Millions of American [sic] can't even pronounce "pundit," or spell it for that matter. On the Internet and on the other form of "alternative media," talk radio, a disliked pundit has roughly a 50-50 chance of being derided as a "pundint," if my eyes and ears are any indication.
The type of person who can't even keep track of the number of times the letter "N" appears in a two-syllable word is not the type of person who is going to offer great insight into complex issues.