@AO
I was trying to take the article seriously when after stating that newspapers are already regulated but the laws aren't properly enforced it described the ongoing criminal investigations as witch hunts and from that point it was very hard.
The current proposal may be very bad but I have very little sympathy for the whingers in the press and hold them accountable for it getting to this stage. The demand for the pointless (because they are already regulated by defamation laws and other general laws) principle of no statutory aspect to press regulation has prevented proper discussion of what might actually be a reasonable system, pushed the process into the realm of Royal Charters, the Privy Council and other closed door manoeuvrings.
I do worry that there may be impacts on Private Eye and other proper investigative journalism but I don't think that the effect of the regulation will be as bad as you fear but the section on the last page about your view of the practical effects and added power to PRs was the most interesting (and most persuasive) part of the article rather than the bulk based on a rose tinted and generally deluded view of the last few hundred years of British history.
I went looking for the views of Private Eye and The Guardian and found this from Alan Rusbridger which I hadn't previously read but agree with to a great degree although it is probably weak in considering impact on magazines and purely online journalism.
http://www.guardian.co.uk/commentisfree/2013/mar/24/need-reform-free-press-time-openness
And anyone talking about 300 years of freedom of the press should be hit round the head with plank of wood with "D-Notice" written on it until they shut up about 300 years.