Whether people care enough about local news to pay for it is, sadly, an entirely different question than whether our democracy requires a strong watchdog function at the local level to ensure safeguards against abuse, chicanery, and outright dishonesty.
If bloggers are to improve our public discourse - helping busy and usually uninformed people make sense of the world - it is necessary to use some sort of standard with which to judge their reliability. Perhaps the answer (strictly advisory) is a body of their peers. Perhaps not.