She called this new design the "clusters" interface and is only being shown to a limited number of people.
I am not sure what is meant by "clusters" but I tweeted to my followers asking them to check Google News and let me know if they see a cluster-like design and I received two responses, all with the same screen shot.
Let me first show you what I see. You can click on any of the images for a larger version.
Current Google News Home Page:
Is this the "Clusters" Google News home page? You can see the home page of news is tighter, with more stories at the top.
Forum discussion at Google News Help.
Update: I have an update with possible real screen shots over here.