So far the recycled newspaper pots are holding up really well. This seedling is the same one shown in my initial post detailing my experiment, and is an heirloom variety known as 'Hillbilly'. Growth is equal to the plastic pot seedlings, the only difference being the necessity to water a little more often -the newspaper wicks water from the soil. Oh, and cute whiskery little roots are starting to work their way through the paper.
One point of potential concern, the pots become a little moldy which may be an issue for someone with allergies to mold.