While the new version of the News module is more forgiving, the reality is - a feed must still have some compliance with respect to its' stated format to be used without issue.  In this case the feed indicates it is in RSSv2.0 format, but it does not follow the specification in the channel/image elements and others.  The feed you are using does not validate even outside of DNN.  Try using this RSS feed validation service, http://validator.w3.org/feed/, and you can see where the failure exists. 

DNN cannot control the correct generation of news feed from providers.  It's sad that so many do not offer valid feeds, when free validation services exist to check them prior to releasing them publically.