I have a subscription to Newsweek (purely because I donated money to NPR). That having been said, I almost never read it. It seems like they've given up competing with Time (I haven't read time in a while - I know it's gotten pretty bad too) and are instead trying to compete with People or Entertainment Weekly. Like those publications, it core audience consists of people who like to look at pictures of things than actually read about them. I remember that Newsweek was pretty bad 15 years ago when I was in grade school but now it seems to have given up all pretenses of having journalistic goals and just shills for the latest media campaign. This is a claim often levelled at Time (synergy with Time Warner blah blah blah) but Newsweek is owned by the Washington Post so I guess they are just pandering to the lowest common denomiator.
A good sign of a news weekly is if there are stories you don't bother reading and you still can't get through it in a week (see The Economist and The New Yorker which I am currently backed up 3 weeks on...)
I remember my dad getting Newsweek. Back then (about 25 years ago) George Will had the last page article. I remember my dad saying something to the effect that I should read Will because he knows what he's talking about. From George Will to Anna Quindlen... my, how things have changed.
Oh, my dad hasn't subscribed to Newsweek for a long time now. He subscribes to National Review now.