A dynamic newspaper wouldn't be too difficult to implement... we already have such a system in EU3, when you click end game and get a summarizes of each ruler:
"King Fred III was only remembered for his drunkenness..."
it would be a fun feature for sure, the problem is making it locally flavored and not appear to be a template that you will just click away every time it pops up because you "know how it goes", also you'd need to be able to add scripted pure flavor stuff to it (titanic etc and pictures) and the whole thing would require quite a bit of development effort.
I fondly remember the newspaper system in Frontier: First encounters, although it was very heavily scripted.