I think one way to avoid this overload is to stop aiming products at our own sandbox and start aiming them towards mums and dads, executives, knowledge workers, cafe owners and others who don't care about myspace, or social bookmarking or making youtube videos.
Another way is to just let the information flow over you. Stop trying to hold onto it.
As I have written previously to Dave Winer and about Constant Pile Reduction Mode it's important to remember news was never supposed to be read like email. No one went through their newspaper and marked off each and every article. They browse and they get what they can about their world before going off to live their real lives.
With this in mind, publishers need to start offering tools to their users that are designed with this reality in mind.
I am reminded by a great quote from the movie "American Beauty"
"it's hard to stay mad, when there's so much beauty in the world. Sometimes I feel like I'm seeing it all at once, and it's too much, my heart fills up like a balloon that's about to burst... And then I remember to relax, and stop trying to hold on to it, and then it flows through me like rain and I can't feel anything but gratitude for every single moment..."
Great movie - I suggest you rent it!