Well, two thoughts about that:
First, the printing ink. Although really toxic ingredients got faded out '93-'96 (in Europe, read up about your legislation on that) to print newspapers, it's still not healthy stuff, I think about 2000mg/kg ink/body weight start to show health symptoms. You can print a LOT of newspaper with that, and almost everything stays in the soil anyway, so it will definitly not cause any acute problem, on the other hand, it's imho not really food rated.
That would be a great question to mail to the producer of the litter, to newspapers, and producers of the ink - would be interesting if the answers differ.
Second, doesn't composting cellulose, which would happen, use up quite a lot of nitrogen, canceling out some of the fertilizing effect of the poop? I'm not sure if this is relevant, since the poop works pretty much instantly, celllulose takes quite some time to compost. It might even be beneficial by absorbing excess nitrogen that way - there are better gardeners out there than Brown-Thumb-Preitler
I use wood stove pellets with a layer of long strand hay on top, I can separate poop and hay pretty easily.