One of the things David Simon (of Homicide and The Wire fame) cites as a reason for newspapers declining is poor reporting. He says that with year after year of cuts, the number of journalists become smaller and smaller.

Plus, with older reporters getting booted, newer reporters are without good sources and usually have to cover more ground. Meaning, whereas in the 1980s a newspaper may have had one reporter for neighborhood X, one for Y, and another for Z; there is now just one reporter covering all 3. So the depth and expertise declines.

He cited a good recent case, where some police officers were involved in a shooting that may have been police brutality. In the past, the newspaper would have sent a reporter over to cover the hearing. But at that hearing, there were no reporters or 'citizen'-journalist bloggers. So without proper coverage, there is a risk that police misdeeds may go unchecked/under reported.