I think it is too soon to know what that profit model will be for emerging journalism. I think perhaps the future may be starting to emerge around a model of services+search+mapping+attention+reputation+mobile devices. Somebody has to figure out a value ad there for journalists and I think it will be reputation+quality of service+attention.
About the bathroom test, I think tools like origami+rss+wireless & e-paper will start to break down the aversion to using devices rather than tree-paper and that soon we will be able to take our content anywhere including the bathroom and beyond the net without going to print. I think the cost of energy alone is going to doom the print model, it is the delivery model that dooms print, other issues just hasten its demise.
The emerging consumer market will see print as alien and quaint as we now see transcontinental rail passenger travel. I think books too will eventually meet a similar fate. The cost of producing, distributing, holding and disposing of paper based media is going to be increasingly hard to justify, even for niche media, and consumers are not going to want to pay it. Not when easy alternatives exist and the collective memory and habits of print media consumption ages and dies off.