I agree with most of this, but the part I'm not sure of is the second graf:
"This wrongheaded perception stems from the economic recession that’s affected all advertising-based businesses, and from the myth that newspapers no longer attract the public support they once enjoyed."
There is a wrong-headed perception regarding newspapers, or at least, news outlets, and the need for and popularity of them. But I don't think the recession is the primary culprit.
It is the cheapening of the product that has occurred because people don't have to pay for it anymore.
This is the real key. And until newspaper executives start acknowledging it, and doing something about it -- even if it is just making people pay for online reading (yes, I know that won't be enough, and shouldn't be all that happens, but it's the principle of the thing), nothing will change and that current "perception" will continue to be the reality.
The simple fact is, people expect to get this product for free now. And that's what's killing us, not the recession, even as bad as that is, and even though it surely is having an effect on the business right now.