It's definitely an interesting question to ponder. For what it's worth I hope they don't. I'd like to think whilethat printed material — books included –may not have the corner on the market in the future, it will always have an audience. There's just something about physically holding a book or thumbing through the Sunday edition of the NYT. Hey, thanks for the comment!
http://emmens.co.uk tobit
– there was the very same question posed to Nick as you asked, and he said something like, despite the amazing technology and the plans they have, there is still something very important about the newspaper experience (and the one you describe).
There was talk though, about the new flexible screens – totally awesome and once they sort the resolutions out (i.e. paper has a bout 10 times the resolution to the best digital screen) and costs come down, these may well replace some aspects of print on paper.
There is the interesting philosophy coming from Tim O'Reilly at the moment about the power of less – and Nick also touched on this – what is the size and scope of a newspaper? A lot of them seem to be down sizing in both the nature of the news and circulation.
Perhaps it down to us to teach our children the significance of being able to hold printed material in ones hand – after all, in the grand scheme of things, its a relatively new phenomena!