That's really cool, but the problem for newspapers is bigger than the medium. I can already pull up the New York Times on my iPhone. Now I can do it on Kindle. Cool, but not big news.
Newspapers are still slow to respond. The news is already out on the Internet before its on the front page of the New York Times.
This definitely helps newspapers, but it's only part of the solution. Another part may perhaps be design? (http://www.37signals.com/svn/posts/1660-jacek-utko-can-desig...)