I think I know where newspapers are going wrong. They are still trying to sell their readers news.
Twitter and Facebook are so successful simply for the "look at me" factor. Everyone wants to be heard, praised, befriended and followed. I never liked Twitter though because it posed the wrong question - what are you doing right now? The answer is always going to be typing crap on a phone and trying to big note yourself. I never really liked the idea of Facebook for a similar reason. Someone I barely know cooked an omelette. Woopty doo.
I can see myself getting addicted to a site where the question is "what do you think?". That's what news sites should really offer - a soap box, a boxing ring, an audience for the silent majority who have only ever been silent because no one would really listen. The news is just a way to start the fight. The fight is where the money is at.