The behavior of the newspapers in regards to services like Google News has always surprised me. Google is providing the papers another means of distributing content, and its at no cost to the paper. Personally, if I see a snippet of news on something that interests me, I will click the link and go straight to the news source's website. I have always assumed that that is a desirable outcome for the news sources.
The only thing that Google does is provide the consumer with more options. Since I use Google News I am more likely to use multiple sources for my national and global news. I guess this scares the newspapers a little bit.