Is it too extreme to say that we the fare-paying passenger are entitled to our aircraft being operated 100% within the rules, by professional crews, at all times?
In my thousand plus flights, I've suffered being on an MD83 operating for BAW flown LHR-TLS where the cockpit door was open throughout, and the FO opened a broadsheet French newspaper at TOC and only closed it at TOD. That's 45 mins in very busy Western France airspace where he could see none of his instrumentation at all. Also a Spanish DC9-10 flight where at one point both crew were outside the cockpit in the front galley getting coffees and chatting up the hostess, whilst the cockpit was empty and a (very attractive female) passenger was standing in the open doorway. Flying our aircraft professionally did not at that moment seem to be the primary focus of the Captain or FO !
Your first experience with the newspaper is not a safety issue as such as long as one crew member is monitoring. What is unprofessional is doing it in full view of the passengers. I have flown on plenty of oceanic 2 pilot flights where the pilots take it in turn to have a nap. It also reminded of a cockpit flight I made (4 hour flight) where the FO was also reading his newspaper and the Purser asked the Captain if she could bring some visitors to the FD (this was pre 911 btw). The captain approved the visits and then suggested to the FO he put his newspaper away and looked "busy".
The second incident you describe is extreme and is sheer lunacy by the crew.
Although an aviation professional at the time, I was not a pilot, but I too spent time in the RHS or LHS seat during cruise on quite a few occasions. I also witnessed it on many more occasions. It wasn't unusual and it didn't shock people at the time. Still goes on a lot today as mentioned by
CVividasku. It only makes the headlines if seen in certain countries.