Ah, the excuse why news should be "free". Isn't that the same excuse the music downloaders use :P In addition to the cost of news gathering if all newspapers are online, then there will be substantial marketing costs, especially when, newspapers shift to trying to grab paid subscriptions revenues online.
I am sure Google news/MSN news have considered that they are in an ideal position to act as a paid subscription gateway for news. Is an i-tunes for news on the way?
The model will change. There is just too much money at stake.