User blog comment:KyleH/Introducing: Magazine Creator/@comment-20644-20091026190500

It's a tricky situation, but from what I understand there is a distinct difference between fair use images appearing on websites that generate revenue based on hits instead of content and fair use images actually being placed into something like this Magazine Creator.

The difference, as I understand it, comes down to this. When Wikia receives money, it's not actually based on content and therefore fair use still applies, as it's page hits. Whether or not the image is there is irrelevant. With the Magazine Creator, however, the fact that the image is there is relevant, as the user is knowingly creating a magazine with that image and, by default, the printer is knowingly printing it and charging money directly for the printing of that content.

So essentially, it's an indirect vs. direct issue. Indirect is pretty safe for fair use, but the direct one isn't. The Magazine Creator is directly printing the content and asking a person for money for the final product.