Whats wrong with using Google News for your news?
The same reason why MSN News or Yahoo News or any "pre packaged news" is not acceptable. Google News does however give you a reasonably good way of customizing the content, but at the end of the day you only get what Google feeds you. If you remotely read very specific sites and it's not "trending" on Google News, you are not going to see it.
Plus Google News is "news" , not everyone use these things for "news" per se . Articles, blogs, podcasts , none of these necessarily fall under "news" or at least not "today's news" .
So no, Google News is great for what it is for, but if you want to control your content, right down to picking the sites where the content comes from, you are out of luck with Google News.
Simple example is following blogs where the blogger don't always post according to the "global news trends" . So while everyone might be ranting about Oscar Pistorius, the blogger might be writing their opinion on his favorite brand of beer. Google News will simply bury it , or not even be aware of it.
Heck the mere fact that my general South African news are limited to about 3-4 sources (IOL/News24/TimesLive) on Google News, while i already dislike their general negative angle , is a problem for me. The same reason i don't read "Die Beeld" , sometimes you just want to ignore the daily crap these guys spew out.
This is also why sites like Reddit / Digg has become so popular. The news are not controlled by the media, but by the users themselves. However Digg did show how this is also flawed, but with RSS you can have best of both worlds and control this fully.