People have bought newspapers over the years for many reasons, and thanks to the Internet, almost all of them have dried up. I can get news from any of a hundred or more countries from the comfort of my computer.
But not local news. By local I don't mean city, but neighborhood or small town. That's the niche that newspapers will more and more fall into. Leave the big picture to the internet, but until everyone, and I mean everyone, uses internet enabled readers, paper is still the most efficient way to get the small but important stories to every person on the street.