Agreed. Newspapers aren't generating the content that the 'hyperlocal' sites are focusing on; how often does a school board meeting story come off the AP wire? The 'trivial and irrelevant' blogs are what the sites are feeding off of (except everyblock of course, which the writer appears to entirely misunderstand).
How much of your traffic and content at windycitizen revolves around major news sources, Mr. Flora? Do you think that your community would be considerably less rich without them?
(Also, what was the address to that journalism startup aggregator that you built? I seem to have lost the link. Many thanks!)