I think the issue is to invent local reporting, not to save it. I don't pretend to know everything out there, but I have never seen local reporting that supplies a product that give him what he wants to see.
"He wants to read local news stories done by journalists, make sure that local government is transparent and accountable, see all the ways he can give back to his community, and have his town be as interesting and alive online as it is offline."
Once he notices the Print piece - as in versioned newspapers with Patch only advertisement in Print - as the way to create sustainable revenue, I think he's got it just right.
As for the trojan horse stuff at the link. Naw..Google doesn't need trojan horses. Just more people doing more media to which they can serve their ads.
One thing worth noting: Google executives have lately been talking about how the majority of small businesses are still not online. This is a huge opportunity for local newspapers, and one they've been trying to crack for years. But it's worth doubling down efforts to figure it out.
Anyone have opinions on the proposition that the best way to fund local newspaper websites is for their sales people to sell Print+Web ad packages? My thinking is that most locals understand print ads, with web ads a "nice to have" but without any clear value. If and when the local web grows, the perceived value of web ads might increase.