Apple Thoughts: Sports Illustrated Concept on Tablet

"Time Inc. released a video walkthrough as well as a working model of its digital magazine format designed for touchscreen tablets."

I like the concept, and while I might not have a need for a tablet, if it could replace my Kindle with something like this I think I would be open to it. I'm just curious on the formats and compatibility issues. For example, I love the Nook but I won't buy it because I have too many books on the Kindle and since from what I've read they aren't compatible, I'm not going to change. What are your thoughts?