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Daily Mirror editor says to forget about SEO
Crowdsourcing,though, assumes that people are going to work on stories because they want to, not because they're compelled to correct something they believe is wrong with a story. And, if you think about it, are people going to have all the time necessary to write in to Google News...
There are also some ethical questions here...along with many, many other questions...
I recognize that there are lots of problems with the idea, which I think you and others have laid out. But I still think it has value -- if it is done properly.
But then I guess you could say that about a lot of things :-)