It's really very well done. Lots of obvious spots where it's 1.0 (can't select text, lots of ads for iPhone apps that don't link to the store [fail!], some interactions are nonobvious or a little clunky), but the experience is fantastic.

Unlike most Flash websites, the tablet Wired is generally a genuine improvement over dead-tree, merging the interactivity of the web site with the design and browsability of the magazine with the UX capabilities of the iPad. Really, it's an accomplishment.

Too bad most of Wired's content is so resoundingly meh...

Edit: It's worth noting that 99% of the iPad magazine apps are roughly comparable to Flash websites: gain a little glitz, lose a lot of usability. The Wired magazine is the first one I've felt really nails it.