The {content} tag will show, Content: with an edit box, when you edit a page no matter if you have it in the template or not, if you don't use it in your template and put text in it the text won't show on the page...
So when you edit your home page and you want the news to be in the main content area put the {news} tag in the Content: edit box and you can use the parameters it takes, read
bold words below \/, to show it in the fashion you desire be it full detail or summary with a more link, this site uses News in many forms through out the site, Home page has News in all 3 col. the results page has news in another form etc...
http://www.centralflchess.org/