A news medium must be able to provide you with the possibility to hear about many, many news events each day, but must also allow you to filter in some way since you will not have time to read all of the news.
Conventional newspapers filter by two criteria; subject matter and importance (as judged by the editors). The most important stuff is on the front page. The next most important stuff is on the front page of the various subject-specific sections. Finally, there is a lot of less important material carried inside the various subject-specific sections. In addition, there are various "summary" types of sections; most newspapers have a sidebar or small column with one or two line summaries of some of the most important daily news per subject section (personally, I find The Economist's "The world this week" section is the best concise weekly summary of big events).
My biggest problem with conventional newspapers is that this method of filtering requires them to grade importance "on a curve"; every day, there must be the same amount of stuff on the front page. I have noticed that if I read every front pages of even a few periodicals (and finish some of the stories), I do not have enough time to get my work done.
The solution would be some sort of space where news only appears if it is VERY important. Then you would read THAT space (for each periodical that you follow) every single day, but stories would appear there infrequently enough that you would have time to do so.
Ideally, I would like to set two major configuration options. The approximate amount of news that I have time to receive on a given day, and a critical importance threshold above which I am shown any news, even if it goes over my amount. Some sort of software would then rank each news item that it has (according to my criteria, or to others'), and present to me the desired amount of news. Effectively, news items which fall above a certain importance threshold will be displayed, and others will not.
You might ask why I don't just read the front page of one single popular newspaper every day? The problem is that I am also interested in specialized topics. For example, I might like to hear about every milestone in the passage of the DMCA. A paper like the New York Times won't put this on the front page. A specialized site like Slashdot will, but I don't want to spend time reading the other stuff on their front page every day.
News sources generally do not provide the required importance information for this task. Hence, some sort of rating system must be used to allow people to create the importance information (the ratings).
It seems to me that the closest thing (technologically speaking) we currently have is KuroShin. KuroShin allows the community to choose which stories make it to the front page. The problem here is that the importance threshold here is chosen not by the reader but by the community. For me, too many stories make it to the KuroShin front page to justify my checking it often.
So, I feel that the ideal news system needs the following components:
All of these components should be as modular as possible. They should communicate with each other through RSS or something similar (for lists of news items), and with some sort of rating communications standard.
The data type of ratings should be extendable. Ratings can take the form of numbers, or of categorization into various subject hierarchies, or anything else. Of course, in addition to this "free form" data type, there should be a few "more standard" rating types with well defined semantics (like a standard numerical rating).