Newsweek says it made the Koran mistake in good faith and that no one would be fired.
So let's review - Newsweek published an incendiary charge that badly damaged the image of the U.S. abroad and put our soldiers at risk. They based the charge on a single unsubstantiated source who had heard the info second hand.
The way I see it, there's two likely explanations for Newsweek's lapse. Explanation #1 is that the reporter and Newsweek's editorial staff weren't acting in good faith and rushed to publish the bad news because it hurt Bush. If this is true, they effectively betrayed their country by putting their ideology first and publishing unsubstantiated rumors that damaged America's interests and reputation. Explanation #2 is that they were acting in good faith but that they are an incompetent news organization that doesn't understand the basic reporting skills Beck and I learned on the Junior High newspaper.
Although I generally don't give the media too much credit for competence, I would still place bets on explanation #1.