Nobody from Wikinews is bothered whether or not
Wikipedia will lift material
verbatim or rewrite due to license issues. The key issue is a lot of
contributors feel that Wikipedia does not see us as a credible source. Yet,
some random online source that is a popular glorified blog will happily be
cited. (Eg Slashdot).
Slashdot is not some random online source, it is one of the largest
and oldest sites of its type. Nevertheless, I would never cite it for
anything other than information about Slashdot, since it only reports
existing news stories and links to them, so you can just cite that
story.
As for citing Wikinews - we're always telling people not to cite
Wikipedia, why is Wikinews any more reliable? I know you have a system
of "publishing" articles, which certainly helps, but is it enough?