Google doesn't provide services that provide no benefit to Google. If people can't get the news they are used to from Google News, they will get it elsewhere, and that means less engagement with Google.
Google News leads to more news being read online. Google makes money when news is read online because Google has a monopoly on online advertising. Google ONLY makes money from Google News when users click through to read articles.
Having data on online news reading habbits is a nice bonus, but the reason Google News exists is to boost ad sales to news sites.
Having data on online news reading habbits is a nice bonus, but the reason Google News exists is to boost ad sales to news sites.