Radley is spot on. Instead of trying to counter his points you need to read them over and over. If I want to find about Charlie Sheens cocaine and pussy habit I will go to TMZ. You're 'magic algorithms' are NOT what decides what's hot and what's not. It's money through ads on duplicate content. http://informifi.com/company.php?page=about
The big aggregators will win and rise to the top. The knock-offs will be de-indexed. There's only so much room for news and gossip sites that don't add value, don't take it personally just move on.