Ben could have totally manipulated that newspaper thing. That could have been footage from a while back. If they can cure cancer, then they can sure pull off a trick like this. I think it was just to make Juliet feel guilty about wanting to leave. Time, as in day and night, I believe, does exist on the island. Actual hours, minutes, days, etc.....however, I don't think the aging process and other things related to it are part of this "real" time. It is on a scale all of its own due to the magnetism.