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I think people are smart enough to sort it out. They know when they're watching one of these food fight shows where journalists sit around and yell and scream at each other, versus serious issue reporting.
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A reporter's ability to keep the bond of confidentiality often enables him to learn the hidden or secret aspects of government.
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Watergate provides a model case study of the interaction and powers of each of the branches of government. It also is a morality play with a sad and dramatic ending.
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The number of illegal activities were so large that one was bound to come out and lead to the uncovering of the others. Nixon was too willing to use the power of government to settle scores and get even with enemies.
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Using these unnamed sources, if done properly, carefully and fairly, provides more accountability in government.