It's my opinion Wikinews must develop a way to allow Fair Use images, while at the same time encouraging contributors to use their camera phones, digital cameras to provide freely-licensed graphics. The two are not incompatible.
The problem is that there is not a lot we can do to "develop a way" to use Fair Use images because for the most part, for Wikinews, fair use does not apply in the same way that it does for wikipedia.
This is not something that we can solve.
English Wikipedia is in my opinion far too liberal about accepting fair use images -- not from the point of view of pushing legal boundaries, because I don't think we really do -- but from the point of view of encouraging the development of free alternatives.
Wikinews should strongly and proudly resist going down this path.
--Jimbo