I think that Kurt's use of the article falls well into the fair use category. Especially since this is news worthy and would have an impact on many of the members of this forum.
All due respect, but did you even read all of what you posted. Number 3 on your list of factors:
3. the amount and substantiality of the portion used in relation to the copyrighted work as a whole;
Here is a quote from the link I provided earlier (you could call this "fair use"):
The "fair use" exemption to (U.S.) copyright law was created to allow things such as commentary, parody, news reporting, research and education about copyrighted works without the permission of the author. That's vital so that copyright law doesn't block your freedom to express your own works -- only the ability to appropriate
other people's. Intent, and damage to the commercial value of the work are important considerations. Are you reproducing an article from the
New York Times because you needed to in order to criticise the quality of the New York Times, or because you couldn't find time to write your own story, or didn't want your readers to have to register at the New York Times web site? The first is probably fair use, the others probably aren't.