Well, I'm about to step in it in a big way...
What newspapers should have done when the Internet came to prominence was to have started charging then, so people would be accustomed to it. Now everyone expects content for free and are shocked when asked to pay.
I worked in (still work in, I guess, if you count TideFans) journalism for 12 years and in the newspaper industry for 10 years. I understand you guys think $60/year is expensive, but how are you going to pay the salaries for the people who produce the stuff?
A little primer on how newspapers make their money: Advertising. Primarily it's "display" advertising (i.e., the ads you see in the news pages) but it's also classified. Online advertising is only a fraction of the business. The chief expenses of a paper are (1) salaries, and (2) newsprint. Add in postage for those papers with a weekly component that mail out for free (i.e., weeklies that are attached to a daily). It's very hard to make any kind of money in the business right now.
Notice I didn't mention subscriptions or single-copy (out of a rack) sales -- that's because they barely matter. Subscriptions matter mostly because they allow a paper to go to advertisers and say, "we reach x-number of people per week." But if a newspaper is charging 25 cents per copy, they're almost losing money on the deal once you figure in the cost of newsprint and the delivery guy.
Unfortunately, banner ads don't pay the bills. If a newspaper were to lose its ability to print and be forced online, it wouldn't work. At that point, subscriptions become very important and even then, my conservative guess as to how much staff you'd have to cut to make the bottom line fit runs as high as 50-75 percent. It's being tried in either Denver or Seattle right now.
And honestly, shouldn't these people get paid for their work?
I'm actually glad to see the Tuscaloosa News moving this way and I hope more papers start to do it. You guys that complain about the quality of journalism need to understand that the newspaper industry can't afford to pay much for writers these days, and in most cases you get what you pay for. So if you yearn for a "golden age of journalism," get ready to pay more for it, because that's what it's going to take.
Example: First-year writers make below $20k/year in most markets. Problem is, you've got some 25-year veterans not making much more than $30k. So what do you think you're going to get for your money?
Again, this is the future. Either the papers charge now, or they go under as papers and start charging for online content once they're reborn as online-only formats. The difference in the product is that you'll theoretically have college-educated professionals versus what you get on most freebie sites. And all it's going to take to run a lot of these bloggers masquerading as journalists out of business is a couple of libel lawsuits, because they don't have access to press associations like the APA and their affiliated legal services -- some of the stuff I've seen these so-called "journalists" write makes me almost have a heart attack. And as a further note on that, there are way too many guys/girls out there who think blogging makes them a journalist. It does not.
As a postscript: If you like TideFans.com, I would put Brett Young on your Christmas list. The only way we're able to do what we do here for free is because the people who run this place love what they do. Believe me, it's been painful from time to time sticking with our free-only model (I'm speaking only on my own behalf here) knowing how much money there is in a subscription model. And I don't say that to pat myself on the back, I say it to say this: It would not be possible for a major, legitimate newspaper to run their business the way TideFans runs ours. The only free-only news conglomerates that are profitable these days are profitable because they're either still making money off the paper product itself, have found a way to get revenue through other means (like affiliated companies, sites, services, etc.) or both.