While I’m not part of the demographic (physically anyway), the iPad magazine for children Timbuktu caught my eye for several reasons.  The design is clean, minimal, and engaging with a Paul Rand / Saul Bass kind of feel and the focus is on the content, not the “chrome”.

The other reason it interested me is that I’m about to start on a similar project, and it looks like we came to the same conclusion.  HTML5 is the way to go for these types of publications, not dumping jpegs out of Indesign.