sleepyjeff, we do not live (yet) in a police state. Propaganda is the job of the government, but not the press. Their job is to report matters of import and interest, no matter the consequences.
It doesn't matter if it's two grunts or two hundred, it's a story. And how it affects troop morale is not a matter for the press to be concerned with.
Widespread, systemic prisoner abuse can't be good for morale either. Should those stories be squelched? How 'bout the story of how the army is going after the people who've blown the whistle on systemic prisoner abuse, but not the abusers themselves? Bad for morale, huh?
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