Design aside, it actually works reasonably well and integrating with FB and allowing you to save stories to an app is a good move.
Aggregated content is notoriously difficult to monetise. Data on webpages that have been saved for later reading however is a valuable asset to have. Doesn't have the spam element of Diggs / likes / whatever and could be a pretty good relfection of a site's popularity. If former traffic levels can be established, Betaworks will have something pretty solid to potentially sell on to one of the search giants.