Are you still reading newpapers? On the Web? Do you prefer watching news?
Personally, I m only reading newspaper on the web (http://www.lemonde.fr http://www.liberation.fr/ http://www.lalibre.be/ http://www.lesoir.be/ and less http://www.lefigaro.fr/ http://www.letemps.ch./ Even if people describes me to be more on the right (for Belgium, translate as communist in the USA :) ), i prefer leftish newspaper. But I like to be able to read different point of view and then make an opinion about myself. Still i find the quality of the writing to be weaker than before. If you now a subject well, you see obvious errors.
Now, i still buy 2 papers every month : "le monde diplomatique" (in http://mondediplo.com/) and "foreign affairs" ( http://www.foreignaffairs.com/) both are very interessing and they are following high standard, I also read the Economist from time to time. I wouldnt want to read them on the web because each article is quite dense and asl myself to focus on it. I would like to have the same depth into classical newpaper but alas :(.
I think Democracy needs Journalism. In democracy, voters must vote for the best candidate. And how would you do without knowing? I think that both Education and Information need to be analyse in the light of how good they are to Democracy
To come back to the proposition, I think is not neccesaraly wrong, this could allow some smaller publication to exist and that will bring more diversity where before the News Conglomerate were tending to uniformity.