Personally, I think the Newsweek error was pretty bad. It only furthers the public's distrust of the media. There is no good excuse for printing a story based solely on an anonymous source and no evidence. The error wreaks of a tabloid rag headline, not a respected news source like Newsweek. They have severely crippled their reputation as a credible source from here on out for me and many others over one stupid article/mistake. You just have to wonder how much other information is presented as truth when it is nothing more than wishful thinking or propaganda.
The problem though is not this stupid error/action. The problem is the fact that radical Islamic men took to the streets to riot over one stupid article and 17 people were killed. You could criticize Newsweek for being the bad guy or even reckless but who was REALLY the bad guy here? Afghanistan and Pakistan are supposed to be allies of the U.S. and what do we get for our billions spent and American lives lost? We get riots, flag burning, death and more hatred. The "export of democracy is the goal" as president Bush says frequently, but you have to start to wonder if it will ever be possible with such deep, deep hatred for the U.S.
If one article can cause death and riots, one must imagine what cost we'll pay for waging war in their lands.