First off, I think "top stories" are always a balance of "need to know" and "want to know." Your taxes are going up -- that's need to know. Lindsy Lohan got arrested -- that's want to know. What's the magic formula? Well, when Lindsey Lohan gets smashed in your town and leads police on a five-hour chase and then files a multi-million dollar lawsuit against the town after police beat her, thereby forcing the town to raise taxes to pay for it -- well ... now we're talking news!
OK, I say that a bit tongue and cheek, but there is some truth to it. I think every editor who ever laid out a front page has grappled with what they think is important news and what they think people want to see. A good rule of thumb is always balance. A more important issue, however, harps back to an earlier thread on good storytelling. How do you make the important stories also the popular ones. That's often an issue of finding the right angle on the story, the right voice and good old-fashioned good storytelling.
As far as what is sensational, when I was a print editor I had a saying: "We don't sensationalize the news, we find sensational stories." Sensationalizing the news (that bad thing that the public hates the media for), that involves taking a story and blowing it out of context or making more of it than it is. Telling a sensational story, however, is finding a story that legitimately gets people excited, motivated, emotionally moved and wanting to talk about it. By very definition a sensational story activates the senses. The truth, well-told, is often sensational enough.
In the online world, page views become another factor in this equation. I know one of the things that Patch has been doing is concentrating on writing stories that generate large page views. I think there is some merit to this. If your site just isn't generating traffic you're not going to be doing those stories you feel need to be done for long. But I think a more important question they may be sidestepping isn't what stories generate page views, but rather how can we cover stories in a more engaging way. Sure, a play-by-play of the board of selectmen's meeting probably isn't going to send your analytics off the chart. But can you take the time to find a few nuggets from that meeting to develop larger stories that people really do care about and want to read? I think so.