I can be as much as a germaphobe as the next guy, but are even a hundred batches of biscuits made on newsprint worse than say, smoking a single cigar? Or eating stuff prepared an an improperly cleaned cutting board?
That said, I wouldn't use newspaper in the kitchen, only because I find it not that burdensome to just flour a wood cutting board or breadboard (or grab some parchment paper) and do the dough there. It's like two minutes of cleanup afterwards. I wouldn't hesitate to use the newspaper for outside or camp cooking though.