The regional newspaper in my state is $25/6 months, which includes the physical Sunday paper and DRM-free downloadable PDFs of the newspaper every day that you can view on any device.
About a year ago I looked around at papers in other states, and the pricing and benefits were similar. It's only the super-premium papers that charge much more, but even the New York Times maxes out at $40/month for physical Sunday + digital. I'm OK paying a premium for the New York Times because I understand it's expensive to pay reporters and editors and photographers to travel to and live in cities around the world.
I think if the people who whine about "I'd pay $xx if the newspaper only did $yy" actually put their money where their mouths are, journalism (especially local) would be in a better place.