Not only is Craigslist affecting ad revenue, it a safe target since it is not a business likely to buy ads. Some news departments get a bit sheepish when it comes to attacking companies that buy advertising. They're more apt to run stories that amount to press releases.

News outlets seem to like stories like sex scandals in general... remember how much attention they gave Michael Jackson. Even jury selection swamped out some other stories that actually mattered. Here's one of the stories I saw no mention of locally during jury selection:

http://news.bbc.co.uk/2/hi/middle_east/3206841.stm