People won't pay for more news. People will pay for filtered news. a service that is customized to give us the information we need because it knows us is the future.
you can't go chasing down bloggers who quote your text. the ability to reference online is a journalistic standard. People will just copy the text into a place that it can be shared and that will be that. NYTimes doesn't see the light at the end of the tunnel for advertising because they don't believe they have a mainstream future representing the English speaking world's view.
by the way... I just quoted your blog... ooops
New York Magazine is reporting (good piece by Gabriel Sherman) that the NYT has decided to move to a paid-online site model — a drastic shift away from its current free website. The article explains the debate between the two sides within the Times — those urging that it has to somehow get to a paid online subscriber base, and those arguing that if it can hang in there, it will emerge with the largest global news site audience, which will enable it to charge a premium advertising price that cannot be charged now: