Mark Thoma thinks newspapers should sell their content, i.e., stories, by embedding them with targeted ads to blogs and other websites.
The most immediate objection is to embedding ads to match the content. Some newspapers are already doing that, of course, but I don't know what longterm effect that might have on the reporting of certain stories--say, investigations of politicians--that might not lend themselves to ads.
Make sure you read the comments. There are several good thoughts there.