It comes back to creating an environment that replicates the old idea of the community newspaper. You had a family that owned a family community newspaper; they would live in a small town or city, they would run it, and they would do it more for the love of telling people what's going on than anything else. I think you can recreate that in the digital world.
There are lots of people who want to live in communities, who want to tell stories about their communities, and who want to do it in a professional, reliable, and responsible way, but they have to earn a living. The people who volunteer to write about their kids' soccer games or who post things on Facebook or tweet out what they happen to have eaten for breakfast aren't the reliable people who are going to provide information that communities need.
You need an environment in which there can be a digital start-up that can attract enough revenue through some kind of business model, be it through advertising or through a subscription service, that can serve a community. If you do that, then you'll continue to have professional journalism in these communities, but there has to be an environment in which there are paid professional journalists. Otherwise, all you have is a rabble. You just have people talking and gossiping, with no control over the quality.