I think they should have just been told they cannot use the term news. They could use the term Knews if they like. Like Krab for News

If the just went with Fox Entertainment, that's fine as well. But if the information you are putting out there you are saying your viewers know isn't necessarily factual, it shouldn't fall under news. The Onion Im sure would be fine with BREAKING KNEWS

I mean the answer is really obvious. Fox and right-wing news outlets in general are designed to elicit strong emotional responses with the stories that they run and how they run them. It is, without exaggeration, literally - in the classical sense of the term “literally” (fuck I hate that I have to specify that now) - the daily hour(s) of hate. Strong emotions elicit the release of dopamine. This is why it “feels good” to many people.