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If it weren't bad enough that people are moving away from newspapers to things like Google News and other instant online news sources, things like CraigsList are destroying newspapers from the other end as well by eliminating the need for the newspaper as a community advertising vehicle.
So the modern newspaper publisher faces declining readership, which results in lower ad income because they reach fewer people, and at the same time nobody wants to advertise in the newspaper to begin with anymore.
On the other hand, presenting your newspaper via the web can solve pretty much all of these problems, and the traditional news publishers are all making this transition (some more successfully than others).
I don't think the current generation of e-readers make very good newspaper reading devices. I too tried a subscription when I got the Kindle but canceled it after three days. The experience could certainly be improved, but honestly I think the web is always going to be the best presentation media for "news". A primarily text weekly news magazine like The Economist would work a lot better. I'd definitely switch my Economist subscription to the Kindle if that were possible.
Z.
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