Aside from the "wisdom of the masses" story promotion strategy, Digg is a conversational form of news. On every front page story, there is extensive discussion about the news. A lot of times, the discussion is just as interesting or valuable as the actual story. This does not mean that you have to be an active participant in the discussion though. Many people will read through the comments to stories that they find interesting, not contributing, but gaining some extra insight or a different point of view.
Because of the competitive nature of submitting stories on Digg, it is often one of the first sites to break stories to the masses, often times having a big story up before CNN or one of the other major media outlets. Don't get me wrong, I am not saying that Digg will bring about an end to traditional media, actually I believe quite the opposite. A large portion of Digg's stories come from traditional media outlets. I think that Digg acts as a great way to see the news that's new, fresh, and interesting in a way that traditional media cannot, but also that Digg drives traffic and users back to those same media sites. Think of Digg as more of a launching pad for your news, rather than a substitute for looking at stories on CNN. Digg is a big step forward for how we get our news, but its beauty is in the fact that it is not self contained. Digg compiles interesting and important news from around the web all together in one place and because of that, it certainly is not in the position to replace the media giants any time soon.