Excellent six part series (Part I, II, III, IV, V, Conclusion) by Barry Parr on MediaSavvy called "Why can't a newspaper be more like a blog?"
Great points on building community, providing discussion forums, access to archives, and providing RSS feeds. Newspapers have only begun to use the web as a channel for attracting readers. There's a lot that could be done to improve the experience, increasing traffic and revenue.
On RSS feeds, see also my earlier post on how news sources get value from providing RSS feeds.