The NY Times has more information on the one-off newspaper that McSweeney's is putting together.
Called San Francisco Panorama, the editors say it is, in large part, homage to an institution that they feel, contrary to conventional wisdom, still has a lot of life in it. Their experience in publishing literary fiction is something of a model.
"People have been saying the short story is dying for a lot longer than they've been saying newspapers are dying," Jordan Bass, managing editor of the quarterly, said in an interview on Tuesday. "But you can still put out a great short-story magazine that people want to grab. The same is true for newspapers."
(via romenesko)