Dan Gillmor has some scathing comments on Bush and taxpayer-funded propaganda.
It's scary reading. I've never had any illusions about the objectivity of the press, but I have generally assumed a certain minimum level of honesty, even if blatantly biased according to an editorial agenda.
This kind of propaganda is more insidious. A right wing journalist that writes about news from a right wing viewpoint because they believe in it I have no problems with. It's relatively obvious most of the time. But news items produced like this, with no proper attribution that allow you to consider the source with a critical mind, is nasty.
But then I'm not really that surprised, given the, from an European viewpoint, extremely right wing slant of US media (which makes it hilarious whenever US right wing people bring out the "liberal media" complaint).
European mainstream news span a quite wider spectrum, all the way from communist newspapers in many countries including L'Humanite (in English), to right wing, extremely conservative papers such as Daily Telegraph, and of course we do have the local variation of Fox.
Regardless what you think of them, this wide span gives you an important corrective, as it makes it much harder for anybody to get away with anything - if a left wing government attempts to feed it's voters propaganda, there's plenty of right wing newspapers that have every interest in tearing it to shreds, and vice versa.
In a "media monoculture" like the US media looks like to me, getting away with distributing propaganda is much easier - nobody really have much to gain by rocking the boat.