Not that the userbase of 50k is big enough to matter right now, but still...
Actual journalism doesn't rely on advertising, and is subscription based. Anyone interested in that is already subscribed to those sources, but that is not the audience this service is aiming for. Some people only want to spend a few minutes a day catching up with major events, and this service can do that for them. They're not the same people who would spend hours on news sites, so these sites are not missing any traffic.
I continue to subscribe to Reuters because of the quality of journalism and reporting. I have also started using Kagi News. They are not incompatible.
So this might result in lower traffic for "anyone involved in journalism" – but the constant doomscrolling is worse for society. So I think we can all agree that the industry needs to veer towards less quantity and more quality.
So if this automates the process of fetching the top news from a static list of news sites and summarizing the content in a specific structure, there's not much that can go wrong there. There's a very small chance that the LLM would hallucinate when asked to summarize a relatively short amount of text.