How can I make sense of the psa testing craziness on the news? What am I actually supposed to have done?

A personal choice. I refused a PSA & got a good physical exam instead. It does not seem to me that the likely benefit to me (an extremely small chance of saving my life) outweighs the expense and morbidity of a positive result. After twenty years it hasn't reduced the death rate from prostate cancer meaningfully. I hope the money that I saved society by refusing the PSA test gets a pair of eyeglasses for a poor kid.
Nothing. The current recommendation, though not universally accepted, is to not test for psa in asymptomatic men.