For all of you still following this situation (mainly personal family members, etc.):

Osberg is warm to the idea of paid content as a revenue stream, especially in developing formats like mobile, e-readers and the iPad. He does not anticipate putting the Inquirer and Daily News behind a pay wall, though he said he would like to experiment with premium-level "experiences that people might pay for."
Osberg said he "has ideas of where to go" with the Daily News but was reluctant to discuss details yet. Folding the tabloid is not on his radar; it too can be part of a growth strategy.
Funny -- I've heard a lot of "ideas of where to go with the Daily News" right here in the comments section of this blog -- but most of them are unprintable.
In the same article, Osberg says he wants to double our online traffic to the universe, which I think is great. I'm a big believer in audacious goals. I think what he'll learn (and I sense he already knows this instinctively) that the issues in growing traffic to a site that's regional in nature and not national like Newsweek (where he used to work) are very, very different.