Or some industries just have to admit it: your business models have changed rather you like it or not.
In this case: people still rely on authentic source as mentioned, or people will like more than one newspaper source for a better grasp at the full picture. Making your newspaper articles easily accessible is really a win-win for everyone. When it was hard to find/paper version of newspaper, you probably stick with one and that's it. Nowadays, a news reader may pick up articles from multiple sources. So I certainly believe in Google's statement that Google's involvement actually helps their business expands. Instead of all the papers fighting for that one reader who may read only from one source, the easy access may allow the one reader to read a bit from everyone.
Archaic, random laws just prolong the pain and make things worse for everyone =/