My 2 cents
a) To read about ash clouds, elections and Thai flavored democracy (general news) I'll never pay or even subscribe for free, as there are many sources, from 24H news channels and radio to web sites.
b) For in-depth articles, analysis from specialists and opinions by relevant people I would pay (isn't this why many people by the "heavy" newspapers today?)
c) To a sub-set of the above I'd probably subscribe, but I'd occasionally want to buy more newspapers/magazines.
d) I would want to have access to the old issues I'd bought. A subscription would be more appealing if it included a search feature, even better if it went beyond the issues I "owned".
e) Full "page" ads between artificial pages of an article are very annoying, and my instinct will be to ignore them and immediatly move to the next page.
F) This won't kill free news on the Web, in an extreme case it will only mean that Google, Yahoo, Microsoft, etc will pay news agencies like Reuters for the content. The most probable scenario is that many news organizations will continue to have a Web presence, but only with the general news/without in-depth articles
All this, however, only with a 100-200 Euros Pad/slate..