It may sound like that, but I don't think Google's full understanding of "fresh" is the same as simply "new" or "in the news". As I mentioned above, with Caffeine, Google now has the ability to refresh the ranking factors that are "attached" to any URL in a nearly continual fashion. This means that their search results can use fresh DATA ABOUT all their indexed content when they generate search results, but not that only fresh CONTENT can rank well.
It has been true for quite a while that new content can get a ranking boost - for some queries (it's been called QDF, for Query Deserves Freshness). That's not new with Caffeine and it certainly will continue - but it's only for certain queries, and it only seems to affect a few first page positions even on those searches.