DS7 has a similar problem. He is concerned about others AND tends to get overemotional. I let him watch the news, but try to make sure he balances the bad with the good. For example, he was recently worried about my husband going to Afghanistan soon, because he knew about all the bad things going on there. DH sat him down with some pictures from the last deployment and explained that sometimes bad thing happen, but they also help build schools and hospitals, etc. It took a couple of days to sink in, but I think it helped. Now he has a better understanding that sometimes it takes sacrifice to do good things, and also that even if the news says nothing but bad things, there is usually at least a little good sprinkled in there as well. As a bonus, he became interested in middle eastern culture, and checked out a book on Afghanistan on our last trip to the library.
It will take a little research, but you can almost always find something to supplement a news story to make it a little less scary. The Bin Laden story is a tough one, since it's basically a celebration of the death of a human being. I told mine that it's always bad when someone dies, but now people who lived around him can be a little less scared. We found some interviews with the locals, and DS seemed satisfied that it wasn't too horrific.
I am adamantly against shielding kids from current events. I do, however, think it is important to take the time to explain it to them instead of just letting them watch the news on their own.
