I think the video of Nick Berg is just too graphic to show on TV. I do believe you can find it on the internet but I personally don't want to see it. That poor man and his poor family.

Well, my point is that all the news outlets are running 10-15 minutes on the prison scandal, and less than 1-2 on Nick Berg. I understand not wanting to see the video, I passed on the opportunity myself.
But constantly portraying the US military as BAD GUYS (yes I know this was only done by a few bad apples) will have a bad effect for us. I can invision Islamic Militants around the world going "See? Even the US agrees with us! See how they are reacting!"

I think it has a lot to do with expectations. I didn't doubt these bastards would do things like this to an American or one of America's allies. Not too long ago they killed an Italian in a similar way. Them doing this is sickening, but not unexpected.
One of the reasons America said it went into Iraq for was to make things better for the Iraqi people. I think most people in the US expected (and still expect) this to hold true. This made the pictures from the prisons shocking, as it clashed completely with people's expectations.

It's only logical I think. America says it does not play at the same (low) level as their enemies, which means it is evaluated on a higher level as well.

I agree with Erique. What is there to add to the whole Nick Berg episode? They drove planes into the World Trade Centre, is it hard to believe they would decapitate someone. the only thing which can be reported on is endless droning on about how terrible it is.
With the Military torturing prisoners there are lots of questions to be asked and many more that remain unanswered.
Josh Marshall makes a similar point about why he hasn;t said much about the Berg incident on his Blog (www.talkingpointmemos.com).
As for the contention that it is a 'few bad apples' look at the Zimbardo and Milgrom experiments going back decades and there is no way that you can draw that conclusion and keep a straight face.