So, discovery of municipal corruption will be paid for entirely by people who lack the conviction that they shouldn't have to pay extra just to have a clean government? Are you sure there are no flaws in this plan?
I'm sorry I don't follow. If you are a writer known for uncovering government waste, and I like to hear those stories, I'll pay you for it, or someone else will indirectly.
It's just not that simple. If you like Ford automobiles, but GM comes up with a new technology that allows them to sell GM cars profitably at 150 dollars, Ford is out-of-business. It doesn't matter if a million people prefer them. Unless you want to pay a 10000 percent markup for a preference, well... But perhaps GM will hire another design department to imitate the old Fords? Sorry--design's cost hasn't gone down. The extra $25/unit wasn't a big deal on a $15,000 car, but is on a $150 car.
This is what has happened to news. The internet has made the price of distribution dirt cheap, but content-production is the same price as ever. And so content will be spread thin. You'll read CNN.com's national news for free, rather than read about the local Rotary club at $1.50 an issue. Seems sensible, except: In aggregate, local happenings are more important than national.
Here in Chicago, The Windy Citizen, my local news startup has just hired its first ad rep. We're basically a local Digg, loosing connecting together all the little local sites in the city through links and buttons. People are going to keep starting little local news sites. We're here to help them get that first 500 readers they need to get off and running.