I think you might be onto something there. A site that provides brief summaries on international and national news for free, with increasing levels of subscription (or targeted advertising) allowing you to get to the in-depth comment and exclusive local news. It could draw upon the army of small-time bloggers willing to receive a few pennies in return for good local comment. The ultimate result would be a vast network allowing you to get details and perspective as you choose, rather than a single editorial slant ("hmm - I wonder what that Iraqi guy in Paris has to say on that one...")
At the moment, we've got too many big newspapers telling us what we already know, and too many local papers which have limited contact with each other, and limited resources. I reckon the first news site that grasps this one could end up sweeping the floor.