That's not how Zite works either. Zite doesn't pull links from your feed, it derives interests from your feed and then serves content it thinks you'll like from an internally maintained database.

This looks more similar to Flipboard in how it works on the backend; it just serves the links provided from the feed (although Flipboard probably has much more complicated relevancy algorithms than this weekend project). Also Flipboard, I almost certainly believe, probably doesn't show full articles unless they have an agreement with the content owner (or the full article can be found in RSS). Flipboard's business model is partnering with content owners to create dedicated sections and to feature certain content.