Is there some kind of a legend somewhere that explains who is what? I've managed to gather that the United States is the "Orcish Empire" (which is hilarious), but that's about it.

In a way, this is kind of sick. The way it trivializes such awful events.
On the other hand, it is really strange and that makes it okay.

And the normal media outlets don't trivialize it by subjecting you to idiodit advertisements and horrible cliffhangers? (VITAL INFO THAT NO PARENTS SHOULD BE WITHOUT. YOUR CHILDREN IN DANGER...... right after this)

"BRITANNIA - HIGHTOWER CASTLE (WZP) - Militia have hinted that more arrests were likely after 21 people, most of them of lizardman origin, were detained over an alleged plot to simultaneously blow up orcish-bound dragon."

I knew it was a conspiracy.

Good point psyconius.
The media did start to trivilize first.
It's info-tainment.

"Nuzak"

By comparing the Yahoo News with the fantasy news, I have deduced that:

Australia is "Bailiwick" and Australians are "halflings".
Afghanistan is "Rustheap"
Fidel Castro is "The Umber Hulk King"
Israel is "Minos" and "Israeli" becomes "minotaur"
Iraq is "the Kurmak Caves"
Japan is "Illithidium".
Mexico is "Rockpile"
Pakistan is "the Desert of Krog".
Terrorism becomes simply "evil".
And, of course, Al-Qaeda is "the forces of evil".

Hezbollah doesn't get turned into anything, but I guess that's okay because it already sounds fantasy-ish.