Actually it is. The social contract with news organizations is that, as long as they report facts and analysis in as neutral and factual a manner as they are able, they can continue to report those facts and analysis. The social contract with pundits is that, as long as they adhere to at least the broadest set of shared values common to the majority of Americans and disagree in good faith when they do not adhere to those shared values, they can continue to share their editorial opinions.

Fox has violated both of those contracts by their own admission, so we are no longer bound by those contracts to welcome their content as news or analysis in public spaces, or to allow their content as news or analysis in spaces we control.

tl;dr: they have decided to stop presenting news, which means that we must no longer treat their content as news.