I hate Newsstand. Mine has one app in it: The NY Times. I use it frequently - any time I'm eating a diner breakfast, or taking the train into the city on the weekend. I don't want Newsstand, I just want the NY Times app in an easy place to get to.
I think most people like the fact that even the Sunday edition is only $1 (that's why I buy it). It's very bare bones. Pretty much just text and sometimes a single image. Charts or images with text are usually unreadable.
I don't find this to be the case. National Geographic includes video, and Wired includes interesting intactive content. The New Yorker even includes a section where you can read all the cartoons ;) Hardly just a PDF export.