There are still remnants of the 'old days' around the newspaper office where I work. We do page layouts on the computer, but the area where boards were worked on by hand is still in place - no reason to get rid of it and it sometimes helps to have a printed page to work with when proofing. Mainly, though, I think we keep it around to show off to groups like Scouts when they want to see how a newspaper operates and all the bits and pieces of old copy stuck on the wall can be pretty artistically impressive. :)
That looks like a page paste-up. I thought newspapers and such all used computer page layout programs for everything now. Frederick, MD is way out there, but it's not exactly Hooterville -- is it? :)