Arthur Silber has more:
...The speed and the depth of Newsweeks climbdown on this story is deeply disheartening. And it shows that there is a danger that is perhaps even greater than the profound danger that outright censorship represents: self-censorship by the media, on every story of importance and across the board. In fact, it is this kind of self-censorship that we have been seeing during most of the Bush administrations time in office: a reluctance to question authority too much, and beyond a certain point....
It's another long, brilliant post on the Newsweek story.