It is!
But Hercules lives! Sort of. PressReader (disclaimer, I work there) is doing exactly this. Think Texture, except way more content. We have more than 7,000 titles right now. About half are newspapers.
You're absolutely right about the US news brands, though. They've got some good things going on their own already. But, we're working at it. This month, we added Variety, Robb Report, and a bunch of Meredith titles (mostly newspapers).
I'm loving this thread, though, you guys. It shows there's a serious interest for what we've got going on at PressReader. Awesome, awesome.