In my head I picture them as a small company, not just "some website". $1m in revenue doesn't make for a very large company. I'm curious how they morphed in size over time and what their expenses were.
I'm guessing the choices they faced was between a slow multi-year slide along:
cut costs->lower quality content->less viewers->less money->cut costs...
and simply seeing the writing on the wall and calling it quits before they hit rock bottom. I guess a third option would be to take The New Republic route and throw out everything the current audience loved about the magazine and try to create a new, entirely different product, with the same name but focusing a potentially more profitable market. But I respecting for not wanting to go that route either.