Something the Times may have damaged here is its global impact. While the advent of the Web presented challenges to the Times (and every other newspaper company), it also gave it the gift of expansive worldwide reach and new levels of influence. I do wonder if it's shot itself in the foot not with TimesSelect, which is a solid business model, but with including its popular op-ed columnists in that program.
If anything, I think that this is an understatement. Maybe TimesSelect is a solid business model - but everyone I know who reads the NYT online is extremely cheesed, me included.