The reason that code is in place is to let the Menu show a node as "selected" if it is the parent of the current page being visited. If you disable the code, your Menu should work just fine except that if your at a page which is the child of a Menu item, it won't show that item as selected.
The reason your news.aspx page showed up in your menu is because you probably added it as a top level item. My guess is that the SiteMapDataSource/Menu are configured to only show 1 or 2 levels of hierarchy. If you put news.aspx at a lower level in your web.sitemap, such as under one of the top level nodes, then it probably won't appear in your top level Menu. Otherwise, it's a simple matter of choosing the combination of 3 properties to fit yourneeds:
Menu:
StaticDisplayLevels
MaximumDynamicDisplayLevels (probably 0)
SiteMapDataSource:
ShowStartingNode
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Danny
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