I'm in PA and 2 of the 3 largest Newspapers in the state are now non-profits. The Philadelphia Inquirer and the Lancaster Intellegencer (as of this year). I think this model is going to be critical if Newspapers are to survive and provide value to their communities.
It's not like everything is downstream of Twitter etc anyways.
Crying about newspapers going out of business is odd. Most of them, just like rcreveli states, fail to provide value commensurate to what they used to, and people are putting their attention elsewhere.