The BlogHer discussion panel was made up of three in-world reporters, who cover stories that happen in-world. Is news in Second Life relevant? Yes, each person has its own interests and if it is one in-world, than someone will need to cover these stories. Like reading a specialty magazine, like the mentioned during the discussion, these are produced for a niche market. Not everyone will read it, but it is there for those who do read it.
The problems that these three may run into while reporting in-world is that of finding the story. They had mentioned that finding the story is the hardest part of the process, one may have to have a lot of friends to find out about a story or be in a specific group. An avatar on Second Life may have up to 25 groups it's allowed to join according to panelist 57 miles. Also, the amount of Lindens recieved translates into "four to eight U.S dollars, but in Lindens will buy a lot of clothes", said Cybergrrl Oh.
I believe that Second Life has a chance of becoming a legitimate source for news. Being able to speak with people all over the world with a couple clicks of a mouse, this gives a big advantage to getting more worldly stories and also others point of view around the world. This helps the environment as well. With the less fuel being dispersed into the atmosphere by using this median, it saves money and saves the eco-system. One drawback may be the amount of people on Second Life. It is said to have around 9 million members, which is just a fraction of the world's population.