We all seem to be discussing the title of the thread rather than the actual situation with Newsweek and Kennerly. However, IMO the title of the thread is not really very well-representative of the actual situation.
This is not about photography for the sake of photography, and whether its manipulation-required nature is a lie or not. It is about journalism, and its use of photography as a tool.
Lie is the wrong word, IMO, and confuses the issues here the way I see it. Photography, like writing or speech, cannot be described as "truth" or "objective" by anyone with any brains. Something that cannot be described as 100% "truth" also cannot be described as 100% "lie", IMO. However, we use photography in journalism despite its limits, because it is still a tool that can, at its best, do what journalism does: help to tell people what happened.
Journalists are supposed to strive for the unattainable goal of objectivity, among other things. We'll never get it, but we should try to always keep it as the "guiding light". Just because you can't get it in its purest form does not mean that you can't get it part way, or better than average, or be informative. It does not mean that you throw the entire concept down the toilet.
What is appropriate journalistic use of cropping, and what is not? Time and Newsweek and many other publications have shown, IMO, time and time again that they cannot be taken as serious news or feature journalism. Cropping a feature photo for use in an opinion piece is within their legal rights, but is not right by many people's understanding of journalistic ethics or standards. In short, it is simply bad, sloppy, lazy, and rather low-brow journalism, IMO...but there is nothing that anyone can do about it.