I think Kagi's target audience is people who want to see news, and not people who want a RSS reader for news. The average person does not care how news gets to them. The fact that it uses RSS is a technical detail they should not have to worry about. Kagi should not be artificially restricting themselves to RSS feed when there is news that exists outside the RSS ecosystem which they should consider including.
I'm currently on the hunt for an RSS reader that has good filtering and sorting functionality, so I can (for instance) pull several feeds from only certain sources, but not see any posts/articles about terms A or B, yet see and sort any posts with term C by time, followed by either posts from source 1 with terms C and D, or posts from source 2 with terms E or F but not G, which would be sorted by relevance.
I know that's a complicated and probably poorly written explanation; but I'm imagining something like Apple Mail Rules for RSS.