This was a bad argument then and it's a bad argument now.

Either a publication can be trusted or it can't.

The difference is that a government that stands in the middle of free press inherently makes it impossible to trust that press. The only thing a government can and should do is provide a safe (free of the fear of the loss of life, privilege or property) area for people to engage in discussion. People seeking honesty will have to rigorously find it or have the ability to choose who they allow to find it on their behalf.

Capitalists will absolutely try to muddy the waters and people must be prepared for it.