No longer denial. MSM is now is full battle mode to shut down the story. They know the inconsistencies, lies and exaggerations Kerry has told. Does anyone think they're going to enumerate them for all to see? Nope, they're past denial and well into suppression.
I guess my point is that they can't supress information anymore. Klien can wave his hand and pretend that Kerry's lies about Cambodia, etc. are little fibs, but people know the whole story. There is a large group of people who get their information from FR/Rush/blogs, and theny go talk to all their coworkers around the water cooler. The media no longer controls information, and that is what they are in denial (maybe moving toward the anger stage -- I forget the order) about.