TheBivingsReport has a great list of how newspapers can (SHOULD) integrate blogs. They also include links to examples.
The short version:
(1) Ask you audience what they think you should be covering.
(2) Ask your audience for input on something new.
(3) Host public blogs
(4) Continue coverage of an ongoing story that has left the limelight.
(5) Help journalists jump off the high horse and join their audiences in discussions.
(6) Write (and host) niche blogs.
(7) Ask your audience for help with a story. Get opinions (check facts!)
(8) Ask experts in your community to host a debate.
(9) Ask people from your audience to write about their areas of expertise.
(10) Provide sneak peaks of upcoming stories.
(11) Allow journalists to share their interests and passions.
(12) Share internal memos and briefings with the public.
(13) Let your audience into the newsroom: write about editorial decisions, story coverage and internal debate.
(14) How can a news organization provide a case study about an issue that it covers? By using a blog.
(15) What are newsroom staffers reading? Perhaps the public would like to read these items as well.
(16) If your organization gathered and prepared content that wasn’t released, why not post it to a blog if it is otherwise fine?
I realize that in paraphrasing some of these ideas, I used the word audience a lot. Journalists need to get closer to (take your pick: the masses, the audience, the readers, the consumers, the people, the community) but there is a pervasive “us vs. them” philosophy. I’m not sure what the correct (politically or otherwise) term might be. Any wordsmiths out there?