Local bloggers are growing their audiences by leaps and bounds, with restaurant reviews, local events, community news, etc., and smaller businesses are usually a key component of the neighborhood.
Areas such as international news and government access are ones that it will be difficult/impossible for bloggers and citizen journalist to replace, and the larger papers will continue to grow their value based on that.
Will I drive an extra mile off the highway to go to a well reviewed local diner, versus a fast food chain at a rest stop? Definitely.