Yes, it has a long and strong history in Chicago, Illinois. At least one of the photographers has indeed won a couple of Pulitzers, I think, and the majority of them have been there 10, 20, 30 years. In my own area (St. Louis, Missouri) the same movement is afoot. One of my friends had been full-time with one of the papers, but she has been moved to "freelance" status so they don't have to pay her insurance or other benefits, nor the full-time salary she once relied on.
I also just saw an ad on a local Craigslist posting this morning which stated:
"Hello, My name is (XXXXX). I am a new photographer, and I am working on building my portfolio. For a limited time I will be providing 1 hour photoshoots for $20. I will edit all photos and put them on a disc to print as you see fit. I can provide some samples of my work upon request. Thank you for your time and have a wonderful day..."
That's a pretty big package for 20 bucks...
m