Some minor comments:
+ - This option affects the file name automake uses for object files. + + Enabling the option shortens the file name such that the prefix + derived (after canonicalization) from the path is not included. For + instance, it is always foo-foo.o regardless of the path leading to the + source file. + + It does not change the directory where these object files will be placed. + Thus, it is recommended to combine this option with subdir-objects. + + - Please read the corresponding manual entry for an extensive description.
Please make the NEWS item a bit shorter. No need for the last sentence, for example.
+ if (option 'object-shortname') {
Please use the same style for indenting that the code already uses, with the { on the next line and indented by two columns.
+ # If object-shortname is enabled the object's filename shall not contain the parts
Please keep everything within 80 columns.
+If this option is specified, then object names constructed by automake are
Capitalize "automake" when used this way.
+therefore ommitting the canonicalized path (@pxref{Canonicalization}). The
misspelled "omitting". Two spaces after sentence-ending periods.
+effect is particularly visible if you use Makefile fragment inclusion feature
@file{Makefile}
+foo}. However, it also works flawlessly if a Makefile fragment is
Omit "flawlessly".
+This is best combined with @option{subdir-objects} because it file name +conflicts become more likely.
Can't parse this.
+The rationale for this option is to allow a setup where there is a top-level +@file{Makefile.am} which includes fragments from subdirectories, which also +generate a Makefile.
Is one Makefile being generated, or many? It's not clear from the sentence.