As a newspaper photographer in the US I can say, to answer the question in the heading: No.

To answer "how come newspaper circulation continues its steady decline?": the answers are many, but none because of photography.

There are lots of outside forces acting on newspapers, it is not (entirely) a self-inflicted wounding. Lots of people blame newspapers for failing to react nimbly enough to the once-oncoming digital tide. True enough, but also I say it is a lot of people basically saying : "You failed to become Google." Which is not particularly fair to the newspaper industry as a whole.