Apparently, there are now only five stand-alone newspaper book sections in this country. Booksquare offers some pertinent commentary. Naturally, I happen to believe that book coverage offers newspapers the perfect opportunity to take advantage of the internet. I also pretty much agree that "book sections will continue to feel the pain ... But that doesn’t mean that book coverage will die." Here at The Inquirer, despite having no stand-alone section, we continue to review at least as many books as ever. They're just scattered through the paper.
Nevertheless, I have long been of the opinion that the decline in circulation is directly related to the de-emphasis on book coverage (we are not perceived as reviewing as many books as ever). The connection is that book coverage has value for newspapers not by attracting advertising but by attracting people who like to read. Take away what they're interested in and they'll take their eyes elsewhere.