I think the problem is a simple assumption - people will leave the print version of My Local Journal and go to mylocaljournal.com when in fact they go from My Local Journal to Buzzfeed or the Yahoo! homepage or Google News or Twitter or Facebook or RSS of their 10 favorite blogs etc...
For example, I don't have a newspaper. I also don't check the local newspaper website. My wife, friends, relatives don't seem to either. The entirety of local news is mostly ignored.
And yet, we are fine. So, is all of that news necessary or important to our lives? As it turns out, no.