A couple of things jumped out from the new newspaper circulation numbers. One thing is that by combining the circulation of the Inquirer and Daily News, the "unified" (not really) Philadelphia paper is now one of the ten biggest in the nation, which is an interesting place to be as the auction determining the future of the paper looms.
Also, while the biggest reason for the steep circulation drop is the obvious one -- fewer people reading the paper -- some newspaper companies actually posted higher circulation revenue, because they jacked up the newsstand price in 2009. That makes sense from a business point of view (in my opinion) but it also means that newspaper reading in America is increasingly an elite experience. So maybe not so good from the "newspapers promote democracy" point of view?