We heard some impressions earlier today, but look at Time Inc's Manhattan Project for yourself: What a live-action Sports Illustrated issue would actually look like—complete with obligatory Swimsuit Issue video clips. Not half bad. [The Wonderfactory on YouTube]
So basically you want to make a fancier looking website but make it portable, so like a PDF. Well whatever, it seems cool in video, but since most everyone these days has a computer with wifi in or and many of us have 3G enabled phones, I don't see why people are going to rush out to pay for tablet based magazines when they could just go to the website and access the same content for free.
Secondly, I guess this means that the apple tablet is in fact true. Otherwise this whole development would be pointless unless Time had their own tablet that they wanted to release, and I don't think that they have the funds for all that R&D.