FOX News is not really a journalistic enterprise, it is a 'propaganda organ' for the Republican Party. People don't watch FOX News to be edified and informed, but to have their own prejudices reinforced. If you want to hate Obama and 'liberals', FOX gives you plenty of ammunition.
At this point the Republican Party is in disarray. Bush did serious damage to the party, and they know it though they don't like to talk about it. They are having an internal struggle as to which is the best way to proceed from here. Right-wing 'news' organizations like FOX, EIB, etc., are thinking more about their own ratings and profits, and are leading the party off a cliff.
They do this, of course, by manufacturing outrage over minor things so conservatives will feel 'wronged'. This is a long-standing Republican tradition. In fact people like Bill O'Reilly and Ann Coulter deliberately say outrageous things to draw criticism, so they can then say "See how they hate us?"