I have just written a very long response to Bags based upon my own first hand experience of the press - and somehow lost it at the point of posting. 
In brief:
Winning libel damages when lies and distortions have been published has the same effect as shutting the stable door after the horse has bolted. The damage has already occurred and no amount of money, no two lines of apology on page 27 or wherever, can take the lies back or undo the heartache and distress caused.
I know this from painful experience. The law, as it stands, is not an effective deterrent and I have no faith in a self regulated press.