Um, yes, it is:
http://interfacelab.com/is-this-really-the-future-of-magazines-or-why-didnt-they-just-use-html-5/
More specifically, it would have been far *more* space-efficient as a PDF with JPEGs. One hopes that most of the hackery seen in the Wired app is a result of a short deadline and not representative of what Adobe's really shooting for.
Every page is rendered flat. That's why it's huge and has iffy typography.
See http://informationarchitects.jp/wired-on-ipad-just-like-a-paper-tiger/