I appreciate your thoughtful comments. Some news organizations will embrace the Internet. I enjoy the "MYTIMES" version of the New York Times and for several years paid for an Internet delivered Wall Street Journal.
Another approach that seems to be working - read about two years ago that the suburban advertising rags were doing surprisingly well, largely because they are INTENSLEY local. Several mid sized cities have internet "papers" along the local model that are surviving although they do get help from non-profits.
I miss the tactile experience of a thick paper with my morning coffee, and I miss the serendipitous expereience of getting waylaid enroute to the paper business section by a story about the arts I might never have found on the internet - but I can get over that. I think either the Sony E-reader or Kindle can return at least some of that for a fraction of the delivery cost, although I have not replaced the lap top yet (a good spill of the morning coffee will probably cause me to take that step).