I frequently use CubeTimer.com to time my solves. I just noticed a “Links” link above the timer, clicked it, and stumbed onto MagneticCube.com — which sells, not suprisingly, magnetic cubes.
The video below shows how they work. Although it appears to require quite a bit of force to turn each layer, it is still a very clever concept.
With a $59 price tag, it’s probably not the resistance that will keep me from buying one. But a really cool novelty cube nevertheless. (Perhaps I’ll hazard the DIY project one day….)
adventures in cubing 
FYI… The prices have come down considerably.