The latest Columbia Journalism Review offers a lengthy analysis of the impact of the web on newspapers. It turns out that editors and reporters have largely embraced the web: it's more dynamic, can easily accommodate materials other than the written word, and offers a much closer connection to readers. On the business side, both the top national papers and the community-oriented weeklies are doing pretty well. The mid-size local and regional papers are struggling, though. They don't have the resources for the excellent total package delivered by national papers, or the close community connections of the weeklies.
Long, but worth reading in its entirety.