"Another idea: pull education coverage together in a special report and collaborate with realtors to sell it."

Hey that's a capital idea, and I do mean capital.

Getting the platform and mix together that lets the journalist report on the theme, and lets the local brand contribute sponsored content gives both parties a meaningful partnership in the community. To me this is the biggest missed opportunity for the indies, capitalise on the real one on one relationship with the local brands in a community and partner to provide a marketing partnership that CBS interactive cant compete with. This "high touch" info journalism/guide collaboration with local brands should not be considered an affront to journalistic integrity, its a new way to engage your readership with your community while supporting local. Its also super valuable to local brands.