Mashable: Digg launched a new social news discovery function called Newswire on Monday. Newswire “gives you the tools to shape the breaking stories on Digg,” according to the social news site’s blog. Unlike other areas on Digg, the Newswire updates news in real-time — as stories are submitted, they appear in the “Recent” section within Newswire. As they are Dugg, stories move up in the “Trending” section within Newswire.
I do remember another site having a similar functionality News live feed of some sort, but it didn't allows users to vote on the story or user interaction was basically non-existent.