This is a little bizarre.
On two sites I just set up on Hostgator, I'm getting this RSS Error instead of the Other WordPress News data:
RSS Error: The data could not be converted to UTF-8. You MUST have either the iconv or mbstring extension installed. Upgrading to PHP 5.x (which includes iconv) is highly recommended.
Since one is a fresh site, and this popped up the first time I logged in, there were no plugins to deactivate, not even Akismet. The second new site only had Regenerate Thumbnails and Akismet active before I noticed the error. I even double-checked the .htaccess and it's set up to use PHP 5.3 by their instructions.
I have several other sites under this account, but those were imported from other servers, and the RSS for Other WordPress News still works on those, even though I had it hidden.
So for me this isn't a FeedWordPress issue, but something that seems to be unique to new installs and new databases on Hostgator... I've set up several other new WP 3.4.1 sites on a couple other webhosts, as well as upgraded a number of sites on different hosts, and never ran into this until today.