Morville makes a very good point. Just as IBM's Deep Blue needed some very smart people to program it to play chess, so for Google News to work at all it needs some smart programmers, algorithm designers, and interaction designers. And it leverages massively off the real editorial choices made by real news editors on real news Web sites.
That said, the only way that Google can get away with its eccentric statements is because we have forgotten what real news is. Real news isn't data, and it isn't even information. Real news present a rounded view of an issue in a historical context. It explains who the protagonists are and investigates their motivations. It explains why this news happened now and not then, and it explains what its implications might be. And Yes, it _is_ the first draft of history.
Watch or listen to British or US news programs on TV or radio and what you will encounter is a travesty of news, barely fit for school children. Newspapers are better but not a lot better.
If news today still meant Real News, Google would be laughed out of court.