The Magazine model won't scale for many reasons. It's a CD Album distribution model all over again. The Web is predicated on the idea that you can read just a single article of a magazine that interests you. I don't have to buy the entire New York Times, Wall Street Journal, or Economist just to read one relevant article. You could argue that maybe I should, but that's like arguing I should have to pay $10 for a CD from an artist that has one hit song, and ten shitty ones.
If every magazine and news website converted to a paywall based downloadable native app, you'd be forced to pay for a lot of shitty content to access good content, and furthermore, your ability to search for content, link, and share it would be seriously inhibited.
There is no standard for searchability or linkability with native apps, no agreed upon way to "Deep Link" into "The Magazine" or any other Magazine app for that matter.
Once again, MG Siegler fails to see the forest through the trees. Scaling up the paywall native app model would be a serious regression to consumption of information, an amazing improvement in the distribution and discovery of information that has occurred in the last 20 years.
Don't sacrifice all that we've gained for shiny and gratuitous animation and fancy native UIs. At the end of the day, this is about the written word, and making it as easy as possible for people to consume and share it.
Onerous paywalls are just as bad as DRM, something Siegler has been bitching about with respect to Hollywood, but here he is, surprise surprise advocating for a form of distribution that protects the bottom line of blog writers.