Yeah, that's a totally valid point: a totalitarian country funding journalism... Something interesting about RT and such, is that people don't tend to think the same about BBC, for example, UK gov. funding is ok, I guess. For me propaganda is clearly a weapon or toll both sides use. But there's something else here, in my opinion, what RT is doing is basically using historical truths commonly suppresed by Western media. Think about it, why make propaganda with lies when you can use the truth and nobody can call you a liar.
I look forward to your post!
I'll try to read something about that book or even the book if I can find it (Dragons...). What I think is that concentration of power will lead to our situation, there should be a way, hopefully in the future, to make people more conscious of this fact, so what we call democracies today could probably focus on concentrated power (political or otherwise) and redistribute in some way.
What former empires did was also criminal, look at the Spanish empire or the British... but today's technology, which obviously includes mass media, the reach is many times wider and more pervasive. Also the instruments of domination are more inhumane and destructive.
But in short, without a radical change in mentality, there's no way out. Any other Hegemon will do what is in its hands to dominate and remain in power.