I don't think journalism attempts to be objective like it once claimed to be. (I don't know that it ever was; I just didn't pay attention to news back in the old days)
I remember watching a viral documentary a year or two ago that rolled around on the torrents. There was a big demonstration with crowds protesting corporate media, with demonstrators arguing that news was being censored and manipulated by media conglomerates. They were calling for the DOJ to break down these dangerous monopolies.
This viral documentary included lengthy clips as covered by news stations. The news stations were reporting that it was a hate mob filled with racists and homophobes, and that the mob "over all" weren't protesting anything in particular. The viral documentarians had a camera person following the news crews and watching them interview people and demonstrated that the news crews were cherry picking and editing these conversations to make people sound mad, stupid, and disorganized. It also showed a brief disagreement between a gay rights activist and a religious activist (both of whom were protesting corporate media) get into a shouting match... it lasted a few seconds, but the corporate media played it over and over again and cited violence that had erupted. (one guy shoved another guy. Once.)
Several different news programs captured the event and none of them represented it as an "anti-monopoly demonstration protesting news media megacorporations." I've been a bit fearful and have had much less respect for news organizations since then. It was a huge grassroots effort with thousands of people to organize that protest and document it and edit and ensnare media companies in their lies, and distribute it via file sharing networks, and I doubt that there are even a million people worldwide that know anything about the event.
The worst part is that the police believed it was a hate mob turned violent and rolled in tanks and teargas and beat the crap out of people, afterward.
I can't really imagine blogger news (even though I definitely question its value) being any worse than that.
News-blogging & micro-blogging has another value much different from traditional news content. That is perspective. If I want to read the news facts, I'll go to traditional news media. But if I want to see how those news facts are perceived & interpreted by different societies/groups/ schools of thoughts, then I'd go to blogs & tweets
While traditional news is gathered, reported, edited, censored, framed, published & syndicated, the tweets & blogs go p2p unfiltered by any of these layers.
I think blog based news will continue to be a relevant source to gauging the pulse of what is going on in the world. For example, when something happens, say a hurricane, and you have someone at the scene tweeting or posting updates to their blog, that's interesting information being reported from a first hand perspective. Sure, some bloggers look at the news and speculate, but a good citizen journalist will present the facts and sometimes offer valuable insight if they are experiencing the situation first hand.
but I will always trust news content that has been through a few cycles of editing and fact-checking more than a news blog. I do read news blogs and enjoy them for their timely content, but if I want the best, most in-depth information, I'll seek out traditional news.
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