There are a number of ways to interpret the British House of Lords report on media ownership:
1. It's not wise to relax ownership restrictions because there are more media sources.
2. It's not wise to relax ownership restrictions because more media does not equal better media sources.
3. It's not wise to relax ownership restrictions because more media does not mean more investment in journalism.
Any way you interpret it, the report found that the growth of news sites isn't necessarily contributing to proper investment in news gathering. The pool is wider, but not particularly deeper. Of particular concern are investments in investigative work. Much of the new sites are repackages of other content, not generation of original material.
While proprietors argued that the proliferation of news sources made it possible to relax restrictions, the report says more is not necessarily better, and relaxing the situation might only make it worse.