It’s like a newspaper in your phone. I like the idea of location-targeted news from the Associated Press coming straight to my iPhone (and probably iPod Touch); it’s like the local page from your newspaper, but without the cow-tipping updates.
A lot of the big news corporations are on board, which means you won’t be getting locked out of good local content. There will, of course, be ads, but you’ve got those in real 3D newspapers too. They say they’ll be launching a service “Monday,” and today is Monday, so go check.