sorry if this has been requested before. i did a few searches of the board, but did not find anything.
what about doing away with groups completely, and only having labels/watches? - but, giving users the option to automatically label all new stories from a particular channel. eg, all fresh off the press stories from gizmodo can be automatically be labelled "tech".
currently, with labels, you have to manually label a story you've already looked at. this works well if you are looking to save items on a specific topic.
watches work similarly to labels in that they automatically find existing/new incoming news on a specific topic. i just ran a watch using the words CISCO IOS - now i have all these great stories about the black hat presentation on cisco ios hacking (a few duplicates though, which would be nice to be able to remove in a future version
the way labels and watches work now doesn't help if we just want to browse the news. for this, we need some sort of hierarchical structure. adobe photoshop album is an example of a program that uses hierarchical labels, and it works quite well. having some sort of hierarchy just makes it easy when you want to browse tech news and then focus on networking and then check out security or sports, baseball, soccer. using gizmodo again as an example, all those stories could be labeled "tech: personal tech".