The function of news is to facilitate smalltalk.
I am reasonably convinced of this. News, as such, is mostly just something that you're supposed to have read so that you can get by in usual social interactions. What we read (and are supposed to have read) is very tied to our place in the social hierarchy. Most folks don't actually want news to be too personalized because then it loses its social function.
I stopped reading the news at one point -- for a couple years -- because of its persistent lack of depth. I realized that reading 100 BBC articles on the Israeli-Palestinian conflict would leave me knowing virtually nothing about it, other than some factoids, whereas the same time spent reading books would be worthwhile.
There's an interesting problem to be solved here -- one that's been on my mental back-burner for a while. I'm not sure if Pandora's box can be resealed and we can work our way back to mediums with more depth and less distraction, but I both hope we can, and have much interest in the mechanism for such.