I am not familiar with any literature other than some papers that concentrate on page description languages. However, I think Håkon Wium Lie's thesis on Cascading Style Sheets, might be partially relevant to what you are looking at least from the point of developing a robust "templating" or "templet" system (also has an interesting bibliography). However, as you said:
There won't be technical difficulties with page and article layout using my system DocScape. I'm asking (myself) about the basic algorithm for "geometrically" generating the page layout based on the given content stream.
The difficulty lies in defining an algorithm for nicely placing textual objects on a page, trying the various permutations etc. The answer certainly lies in the realm of AI and especially machine learning.
I would envision a system that has scanned and translated into templates (based on an as yet to be developed system) 1000s of editions and then out of this corpus to train the algorithm to produce similar designs using pattern recognition algorithms.
However, the problem will become more tractable if you re-phrase as: from a set of pre-determined typographical layouts can you automate the production of a newspaper. The answer for this is almost certain as proven by LaTeX that automates the production of pre-determined styles for books etc. Such a system has been described by DeTreville in a PhD Thesis. The dissertation is a bit dated but has a good approach in abstracting layouts.
I tried hard on and off to try and define an algorithm that from a set of figures and text produce art book like output. So far I have a collection of about 100 different designs. How do you choose one from another still evades me and this is three orders of magnitude easier.
But, please don't let me discourage you. I think is a great area to develop and research or create a start-up for it.