There's an interesting comment on one of my previous Recovering Journalist: What Will Happen When the Presses Go Silent?posts that I want to highlight and address more broadly than just the back and forth of comments.
No contradicting your main point that papers fumbled the Web. But journalism's demise is no reason for celebration and netroots b.s. of "a thousand journalistic flowers" is wrong. There will be no flowers, just a brownfield.
This is a common sentiment these days: Somehow conflating "newspapers" with "journalism," as if papers are the only place that journalism is practiced. And that's simply incorrect.