The Daily app for a week now and as a free service I'm sure I'd use it from time to time. As a paid one, and even for the low, low price of $1/week, I don't feel it's worth it.
For every cool user interface feature in The Daily there's one that gets on my nerves. For example, their use of the cover flow option to scroll through the pages sounds nice but quickly becomes frustrating. What should really be a nice, smooth scroll is painfully choppy.
But it's not really the UI features that turn me off. The content is so-so, and to be brutally honest, I find Google News is a much better solution for my needs. And, of course, Google News is totally free.
And here's the kicker: If I ever feel I'm missing anything from The Daily I can always just go read it via this nice (free) Tumblr index. Now if I could just automate Instapaper every day to grab everything linked to off a page I could pretty much replicate The Daily app experience for free...