I don't know why, but I haven't been following this very closely.
From what I do know, I think it's unfair to beat this up as an issue of the freedom of the press. The principle of the freedom of the press is meant, primarily, to enable accountability of those in power (particularly, but not exclusively, of government). Performing such a function itself requires power. News of the World, and, it seems, other Murdoch-affiliated media agencies, abused their position; their freedom to be society's conscience. In abusing this freedom, they lose it.
That's not the government coming down hard on the media for reporting things it doesn't want reported, but the government coming down on an unethical practice. News of the World, Brooks, and Murdoch deserve all that they're getting.
The situation of politicians debating Murdoch's Sky bid is a lot more concerning. True, Murdoch controls a great proportion of the media, and in many countries. As stated, the media inhabits an inherently powerful position. It is how the vast majority of the voting public determine who they vote for. That essentially one man's private business empire can determine national elections is concerning. But I'm not sure it's for parliamentarians to debate as a specific issue; as though there is a personal gripe with Murdoch. Perhaps rules about media outlet consolidation or something (like anti-monopoly/oligopoly/imperfect competition regulation for other areas of the economy), but not specific issues with specific people.
EDIT: Also, why should anyone care about NotW? Added nothing to no-one, except to keep people stupid.
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