Google has confirmed in a Google Mobile Help thread that many mobile users of Google News will be redirected to the desktop version. Some people already began noticing it and Google's Robin has confirmed it saying:
Hi folks - As you've noticed, we're switching around the Google News site a bit. Let us know what you think about using the desktop site vs. the old mobile version!
I am not sure if this applies to iPhone and Android users, because I personally see the iPhone version, which looks like this:
But some are seeing this on their mobile phone:
Big difference in the mobile experience, don't you think? Most people are not happy with the change.
Forum discussion at Google Mobile Help.