And whilst the current solutions (eg: everyone sees the same content on BBC) aren't perfect they're good enough and this is a tough product to justify to users.
Additionally, changing habits is really really hard. People habitually load nytimes.com every lunch time to see what is happening in the world - and you expect to shift that habit - for a marginal improvement in life? The brand loyalty with publications is ridiculously strong, not only do I trust The Financial Times, I hate the alternatives. "You just called me a Daily Mail reader? I am literally offended."
A lot of people insist that RSS Readers are too complex, and juggling multiple sources without an RSS Reader is too hard. That's true, but in reality most people don't care. If you think about it - people use different destinations for just about everything, so it's tough to imagine why this should be consolidated.
Another small problem with this market is that algorithm aggregators become over tuned. You read six articles about BP and suddenly your newspaper is less of the brilliant news paper and more of a BP quarterly earnings report. So then you down vote a few articles and then you miss the next BP scandal a few months later.
Also with this product - I'm expected to "thumb up" interesting news articles, this hurts emotionally if I'm "thumb up-ing" a news article about six 21 year old american soldiers being limbless in Iraq. "Show me more like this?" I think not.
I think there is significant value in topic communities and curation, an example of this is the Reddit Subreddits, if you want to stay informed in Venture Capital, in Golf, or in MotoGP it's quite hard to scratch that itch and always find cool new content (eg: a few articles a day)
Ask yourself: How would you find up to date content about Fashion? Or Coeliac Disease? Or Graphic Design.
I think news needs a fundamental shift towards social consumption, I think Google Reader, Twitter and Facebook have incrementally shifted this towards a social experience - which is exactly what news is about, it isn't about "being informed" per se, it's about "being informed amongst your friends" people want to look like they are in tap with what is happening in the world, and do not like having to ask their friends what they missed.