Yes, but not just Craigslist (Score 3, Insightful)

Craigslist was part of the problem, but not all of it.

Newspapers traditionally had a 3 legged stool of revenue:
- subscriptions
- display ads (on paper)
- classifieds

Google and Facebook ate the display ads, Craigslist ate the classifieds, leaving them with mostly just subscriptions. Add in that most US newspapers were bought by private equity that loaded them up with debt payments, and most newspapers had higher costs (interest on their debt) at the same time they had 70% less revenue. To respond to that gap, they laid off reporters and writers, making the product worse ... chasing away their subscription revenue as well.