The killer-app of newspapers is good journalism and reporting from the scene of something interesting. Newspapers fail to do either well today, and wonder why they suffer so much.
Bloggers can help -- but not for foreign reporting (aside from foreign bloggers). That is where the money behind news rooms actually would have a huge effect.
Foreign reporting, incidentally, is where traditional media sucks the most. Judging by your name, you can probably appreciate this yourself, by reading a few articles about Russia in English or American papers (as long as we don't count exile.ru to as an American paper).
Bloggers can help -- but not for foreign reporting (aside from foreign bloggers). That is where the money behind news rooms actually would have a huge effect.