So these people running the Adsense blog think that publishers want to waste valuable page real-estate with a non-performing widget? Maybe it is a nice little gimmick for bloggers but I doubt any mainstream publisher will even bother. There's no revenue.
How about adding value to your readers by displaying related news?
Unfortunately, the limited added value of displaying news (that thousands of other sites using the exact same widget will be showing) is negated by having those same users click away from your site to read the full article.
Yet another kick in the teeth to the newspapers, too. (I say this because my mother has to give up her home delivery of the Detroit Free Press after receiving it for 60 years - they're cutting it down to two days a week this month)
I actually have two sites where I plan to add it as a service to my regular members. I don't really care if they leave my site, what I care about is that they keep coming back. The more useful the site, the more likely they are to come back.