Completely agree Allan. Great anecdote! Much of this also comes down to how the internet has destroyed the business model of media companies. So these Pulitzer prize-winning journalists who were known for hard-hitting investigative journalism in their hey day are now struggling to get their salaries paid, as less people are consuming print media, therefore less advertising, etc. I have worked in marketing myself, and so much of it centres around 'giving the people what they are already interested in'. It's a cliche but true - people would much prefer a beautiful lie (that plays into their pre-existing worldview) than a (paradigm-shifting) ugly truth.
I remember when Anchorman 2 came out - although it's a comedy and obviously fiction, I found it interesting the story centred on this: in order to make the news more 'watchable' and to win the 'ratings wars' and to fill out 24/7 news channels, they resorted to making things up. And that other news channels then eventually did the same to compete. Wouldn't be surprised if there's a smidgen of truth in there!