I agree - I am torn also. I listen to NPR for a few hours per week while I commute. For the most part, it is unbiased (yes, there are exceptions), and provides a wide range of news stories about science, politics, culture, and so forth. I think it is a valuable service and it is good to have a source of information that theoretically has no bias behind it. They can report stories without a conflict of interest.
At the same time, there is so much news around and so many other programs, through internet and a gazillion TV and radio stations, I do not think the government needs to fund broadcasting in this manner. I do not think they should immediately pull funding, but should have some kind of transition period (ie, 5 years?) where funding will gradually decrease and eventually become non-existent to allow them to try to transition to a self-supported entity.
I think NPR and PBS are great, but there are so many great things the government funds. We have a huge deficit and a huge debt, and cuts clearly need to be made, and unfortunately, some things will have to go. As much as I like these media outlets, I think they are disposable from a government standpoint.