I still buy a lot of magazines, but I haven't bought a game magazine (other than this issue of NP) in years and years. While its true "all that stuff is online anyway" I pretty much hate new games, so that's really the reason why for me.
There is still plenty of room for magazines. I still buy Grassroots Motorsports, Retro Car, Racecar Engineering, Racetech, Classic Motorsports, Dengeki Hobby, Hobby Japan, and UK photography magazines (for some reason US photo mags suck major dick, no idea why this is). All of these do what the internet rarely does. They have great photos, layouts, and the stories are longer than two paragraphs.
Part of whats killing off magazines (one of many things) is that people don't want to pay for intellectual property anymore...AT ALL. Too f*cking cheap to buy music, too cheap to pay more than $0.99 for a game...they sure as f*ck aren't going to drop $6 on a magazine.