I've been putting out a local Daily thanks to the good folks at Paper.li for about three and half weeks through a selected listing off Twitter.
That's enough time to finally get some thoughts about using the service.
It's another marketing tool
Try to find the best time to get it noticed. This is yet another item in your arsenal that needs to be marketed no matter what. It allows you to put out your editions when you want. It would make sense to see what is best for your followers, what time is best to send the aggregated feed out to everyone?
Only Get the Right People
The easiest way to get contributors is to follow a ton of related folks on a Twitter list and/or use Twitterfeed to dump RSS feeds into the mix. How you might ask? Set up a dummy Twitter account, link different feeds via Twitterfeed into it, and booyah, great information dump. Some suggest adding more, but I think it depends on the lists and how developed they are. If you are running a more localized paper like I am, I would focus on those that provide the best content as opposed to just listing people because they MIGHT fit the criteria.
Read Your Output
Paper.li does tend to get repetitive based on the output of Tweets you have followed. I can't imagine doing one broadly. But you need to review and add/eliminate from the listing those that are not really bringing much to the table.
Folks who have followed my Tweets have appreciated the additional mentions when the paper came out and they were Tweeted. I heard from some appreciating the "feature." It is another way to highlight those that you like.