The future of newspapers: Will the local weekly thrive while the metro papers die?

Are the financial problems occurring in the newspaper industry tied more to large metro papers than to the smaller community weeklies?

I'm wondering if weeklies, because they are hyper local in focus, are more relevant to their communities. They cover what's going on in a community of people who may actually know each other and are interested in what the paper covers because it covers their life. In a large metropolitan area you seldom see anyone you know in the paper, which also tends to focus more on the nation, state and region than your neighborhood. And those news beats are covered by many other sources, on air and online, so that you don't need the newspaper to provide that information.

This may be another variation on targeting a niche audience, in this case its based on the neighborhood where you live.