First, let me say that I don't think Dragon isn't bad as it stands. I get about every other issue, but I've been thinking about a subscription -- even the issues I don't think have $6.00 of content usually have an article or two worth my time, so the subscription price would let me feel like I was getting my value from all of them.
Also, this is in order according to train of thought, not importance.
1) Kill the FR content. Then again, if it were up to me, I'd kill the FR content in the FR books.
2) Turnabout's fair play -- Kill the GH content. I really love Greyhawk. I really hate Living Greyhawk. Put out a friggin' sourcebook or two instead of the magazine bits. Okay, I'll stop now before I really rant.
* Maybe an occasional article on either campaign world (or Kalamar, maybe), but not anything resembling a regular feature.
2a) Anytime a setting needed to be used, use Greyhawk. Greyhawk as the default setting was one of the big promises that WotC made for 3E. Other than the deity names in the core books, which are only included because the new clerical domains rules require something, this is practically a bald-faced lie. That's another rant issue, though, and not really Paizo's fault.
3) Better cover art. Some of it's really good (the Gladiators cover). Some of it's mediocre (the Swashbuckler knife guy). Regardless, the style is lame. Dump the paper doll looking crud and go back to full-cover spreads. Those were memorable -- really memorable -- almost worth the price of the magazine themselves. Even the best of the current covers are immediately forgetable.
As someone else said, don't let it look like PC Gamer.
4) Kill the computer games stuff. That's what PC Gamer is for. Dragon is for table-top gaming. Maybe an occasional two-page spread on some hot game. Nothing more. I'm going to kill someone if I see another worthless port of the Neverwinter Nights monsters.
LARP articles would be better than CRPG articles. At least those actually involve dealing with another person face-to-face.
5) Change the Table of Contents. It's useless at best as it stands. I _have_ to read the magazine from beginning to end because the ToC is too painful.
Actually, looking at the Gladiators issue (303), it isn't so bad. I do remember some really horrid ones, though. It the least, they could get rid of most of the thumbnail pictures and lay it out better.
6) More Campaign Components (or, at least not less). Even the ones I wouldn't base an entire campaign around (Gladiators are cool and interesting, but they'd never be more than a side piece in my game) are useful and inspire a lot of ideas. These are absolutely _awesome_.
6a) Here's a couple of actual suggestions: Campaign Components: Barbarians. Campaign Components: The Church. Campaign Components: Explorers (Marco Polo, etc.). Campaign Components: War (Crusades, Roman expansion, etc.).
7) Alternate/additional rules. I remember some of the older articles with rules for things like pain, equipment upkeep, more realistic height and weight tables, underwater adventures, and double and triple specialization (just to name some of the Dragons I've still got around). I wouldn't devote _too_ much space to this, but these sorts of articles were great.
8) Even more articles like the DM's Toolbox and other "Wizard's Workshop" articles. _This_ is where it's at, baby. Give me more ideas on how to involve players in the game, add depth to PCs and NPCs, and speed play. I guess I don't know if I'd add too many more pages to the section, but it definitely should grow a little.
Things like the alternate summoning tables and the prestige races (although I don't much like that particular idea) are along the lines of what I'm thinking.
9) Get rid of the fiction as a regular feature. In 20 years of gaming, 15 of which I actually collected Dragon, I think I've read three, maybe four of these. About the only thing I'm less likely to read are the Realms updates.
That'll do for now.
Edit: D'oh! Changed "Dragon is bad as it stands." to "Dragon isn't bad as it stands." Major bad of me. Completely the bass ackward meaning that I'd intended. Sorry, Paizo.