I'm still a big fan of magazines, and their layout. I like the fact that a lot of information can be smartly laid out in a single page, where things that wouldn't otherwise catch my attention have an opportunity for it. While I spend as much time on the Internet as just about anyone, I actually like well researched and edited stories, and the thought and effort that is required to distill all the content we have access to into a digestible format. Newer information isn't necessarily better - I'd consider ~90% of what comes across Engadget's or Gizmodo's front page to be garbage.
That said, few magazines have gotten it right yet. The early adopters saw huge numbers of downloads early on because everyone wanted to try it out. But with most magazines not yet offering subscription pricing, most people won't bother paying $6 or whatever per issue.
Two magazines that have really gotten it right so far are The Economist (well-done app that mimics their print layout, but utilizes the format of the iPad in a way that doesn't interfere with their content, and free access for print subscribers, and digital only access available for ~20% less) and Car and Driver (this one was unexpected, issues are currently free, and they don't have a subscription option, but they have done the best job of keeping the best of the magazine format, but making it better in sensible ways. It sounds stupid, but the first time I was reading a car review article and the picture at the top of the page became a movie, seemingly out of nowhere in the 'magazine' I was holding in my hand, it was astonishing - even for someone as jaded as myself).
I have hope that within 6 months I won't have any paper subscriptions left.