alt Hacker NewsGround News presents you a "balanced" news diet by presenting you with two sides that are implied to be equally valid. Except one of the sides is just (relatively accurate) plain old news and the other side largely consists of institutions who publish a lot of nonsense and paid Ground News to be there, or have ownership in common with Ground News. Their target audience is people who were mostly consuming the first group before (not a single Ground News ad was ever run to an audience aligned with the second group) and the purpose is to make them gradually accept the second group as equals to the first group.
Also it doesn't actually show you the news. It just shows you links to news sites that you need to be separately subscribed to if you want to read them, so in that sense you're just not getting the product you probably thought you were getting (access to balanced news), so it's a double scam.
There's video essays about this on YouTube of course since that's where Ground News was mainly advertised.
The product never purports to show you the news directly, and the reaction of "the other side largely… publish[es] a lot of nonsense" is a) not true and b) why the product exists. For that matter, the dichotomy you have in mind is not even valid in the first place.
If what you say about the audience composition and the general background situation were at all true, it would be impossible for them to find sponsors, because it would require YouTubers who depend on appealing to a partisan audience to deliberately seek to betray them. And if what you say about the product were at all true, it would again be impossible for them to find sponsors, because none of the YouTubers would be willing to endorse the product.
If anything, the problem with Ground News is that they buy into the same categorization scheme of the news that you do, perhaps with a different bias but the same clustering and same false impression of a single-dimension spectrum.