Fox News is to journalism what professional wrestling is to sport, regardless of whether we're talking about their news shows or their opinion shows. Admitting it's an act didn't really hurt wrestling and it probably won't hurt Fox News. But carrying on with the "But... but... We're fair and balanced!" act is like pro wrestling continuing to insist that the outcomes aren't predetermined and there's no steroids. When pro wrestling is more honest than a "news network," there's some serious deception going on.
And I agree with Cenk. The White House is right to point out the fact that Fox News isn't news. What's the harm? Attacking Fox News is certainly better than asking administration officials to resign who are named on the Glenn Beck Un-American Activities Committee.