Well, yes you could make a multi-column format, but I'm not sure I'd want to use it, unless it was for a specific newsfeed. The trouble formatting newsfeeds is there is no one standard type of feed, so you get a wide variety of rss usage, atom, rfd, and whatnot. Some feeds have enclosures, some have html, some have mp3s, and so on. You could do it, mind you, just that it would not lend itself to very clean or easy translation, and the look might not even be worth the trouble - but yes, you could do it.
Also, the other consideration is the DNN skin being used. If the newsfeed module is going to be multicolumn, then you would probably want a skin on a page to only have a content pane w/o side panes, otherwise it's going to really be difficult to keep the formatting from disrupting the skin layout.
So, you want an example, I bet. Well, before I embark on creating one, I'd need to see a feed URL of something that was worthy of that type of xsl, better yet, take a look at some tutorials on creating XSLs, and you can do whatever kind of transformation you want. XSL is just another type of programming, and there is no one magic xsl that will suit everyone. I did create some xsl that attempt to be AllInOne, but there is a theorum in Programming that states - for every solution there is an exception. Cheers