Yeah, true. If the definition of "news" here is really as poor as "posted by a "News" site", then you're likely right that that would incentivize much of the same behaviour.
Even still though... even companies like Buzzfeed will occasionally fund "hard hitting journalism". Handing them money blindly like that, though obviously inefficient, may still serve to make more "real journalism" financially viable. And I think there's still people out there with a passion to do that, provided they could survive doing that.
Agreed in general though, even as a first pass at the idea, this is an awkward and subpar stab at it, with some obvious issues.