I'm not sure that the news industry is healthy and functioning, but I do know that world citizens seem to be very happy living in a world of celebrity photos and memes and " listicles" these days. The fact that PG's examples are Perez Hilton and TechCrunch demonstrates that pretty well.
The only thing that has really changed news is that now everyone has a camera on their phone and can post footage of events on Twitter, Instagram, etc. That stuff does bubble up to the top when it happens- I'm not quite sure where we can go from here.
Put more cameraphones in the hands of oppressed citizens, sure. Besides that, I think the world of news is going to stay where it's been in the past couple years: ridiculously dumb websites for the masses (Buzzed et al.), sites with high quality content for extremely small niches (but a small niche of 10k people each paying $10 a year can easily support an independent journalists or two, so great), and cameraphone footage as primary sources for everything (which is wonderful- it's raised awareness tremendously in the recent years for things like police violence).