News trading is when you wait for news that'll resolve a market and then buy the market all the way up to 100/0. By "actively participate", I don't just mean doing that casually, but investing significant time or effort into it - keeping mental track of a bunch of news-resolving markets and quickly trading on them, writing scripts that buys markets when news comes out that resolves them, checking for news every hour, etc.

Why might be virtuous: It updates markets earlier, it's something else you can compete with people over, if you let other people get free lunch you could get it distorts manifold by weighting their bets above yours

Why it might not be: You're mostly grabbing AMM liquidity that's 'free', rather than competing against other traders. You're not testing forecasting skill, just willingness to do rote activity for M$ or competing on news reaction time. It's not valuable to move a market 3 minutes earlier after news comes out.