I remember it also.
As far as the press, 1967 was a year for dramatic news beyond the 6-day war. It was lead story on TV for a few days, but other bad news took over soon.
Vietnam was spooling up with the first 100+/week US battle deaths.
It was a long, hot summer of the worst race riots in the history of the US.
China tested its first hydrogen device.
The Apollo astronauts died in an inferno.
For me, the question about the Liberty was always about the failure of the ship to respond to identification challenges by radio and its response to the shots across the bow by firing at the Israeli boats.
It's important to note that these intelligence gathering (spy) ships do not fly a flag when under way. They may or may not raise a flag when challenged. Either way, someone on either side made a mistake. More likely, it was a combination of mistakes by both sides.
Just like the Pueblo capture by North Korea later (which raised a flag after being challenged), two camps evolved. Some said both captains should have been court martialed and others said they should be given a medal.
One got a medal, the other was recommended for court martial, but the Secretary of the Navy overruled it.