To me, the real problem with Barack Obama and company's offensive against Fox News is that if they want to start saying Fox is not news, a number of other cable, network, and other news entities need to be written off as well. Some because they're rabidly and unabashedly slanted politically (MSNBC). Some because they're bloated with infotainment that's barely passable as news, even if it is "unbiased" (CNN). Some because they cater in a biased way to a narrow ethnic demographic (various outlets that Obama's worked into the lineup in place of Fox).
I take Fox News with a grain of salt. But, while I rarely agree with Joe Klein of TIME Magazine, I think he proves that Fox News is serving a core purpose of the press in the Obama era (though I disagree with the shrillness of his hyperbole in this instance, in line with my general distaste for his opinions):
If the problem is that stories bloated far beyond their actual importance--ACORN's corruption, Van Jones's radical past--are in danger of leaching out of the Fox hothouse into the general media, then perhaps the Administration should be a bit more diligent about whom it hires and whom it funds.