Exactly so. The operator of the machine gets to control what it is told is 'true' and 'false'. That said, assuming a nominally good actor and an inability to have people process every article, this process provides a means to quantitatively analyze for coherence with your controlled corpus.
"Quantitatively analysing the coherence of a controlled corpus," is not exactly a solution to fake news, although it's probably useful for a few other things.
It certainly helps a lot due to the fact that today you can't be expected to practically sift over all the available information yourself because there's simply too much of it.
If we had a system like this that worked, we could at least leverage it to be able to quantify the coherence of a much larger set of inputs and with many controlled corpora at once.
