That's not what newspapers were about. Giving a eulogy while the subject is still coughing up blood is a bit unorthodox, but here we go! Newspapers were low-budget operations that spent as little as possible on everything while putting ad revenue in the pockets of their owners. Next to the restaurant industry, they were the least forward-looking group of people I've ever seen. They are actually very similar to the restaurant industry in a lot of ways; labor violations abound, they never spend money on anything they don't absolutely have to and they never, ever, EVER plan for the future. Saying that a Newspaper should have developed the media application of the future is about as ludicrous as saying that McDonald's should genetically engineer the bull of the future, except that McDonald's is actually more likely to do that.
There will still be reporters and the news sites that managed to adapt enough to survive in the Internet era, but I don't think there will be print papers for that much longer. I suspect Google will be the largest employer of reporters in the future, and that they'll somehow figure out how to outsource local news reporting. Google had the kind of vision to build the media platform of the future. Newspapers didn't.