Ghost Word: Why Local News is Your Future:
"But if a gathering of about 20 local bloggers Thursday night at the Berkeley Graduate School of Journalism is any indication, the future belongs to sites that focus not on broad swaths of territory, but small neighborhoods. I am referring to hyper-local sites, places where readers can get news about local stores, local crime, and good eats, as well as larger stories that look at government institutions."
This makes a lot of sense but even more intriguing is the idea of "community funded journalism". See the last paragraph.