While the velocities of the two cartridges may look similar at first glance, one has to remember that most published velocities for .22 Magnum are from rifles. I found a review of the Kel-Tec over on gunblast, and the author seemed to be getting 1100-1500fps depending on the bullet weight and brand of ammo.
http://www.gunblast.com/KelTec-PMR30-2.htm
I also found a review by the same author (Jeff Quinn) on the FN Five-Seven pistol and, with comparable bullet weights, the 5.7x28 seems to be delivering 400-600fps higher velocity than the .22 Magnum out of the Kel-Tec.
http://www.gunblast.com/FN-FiveseveN.htm
Besides the difference in ballistics, the .22 Magnum has other drawbacks when compared to the 5.7x28. As has been mentioned, the long, tapered, rimmed cartridge is not one that is particularly easy to get reliable feeding from in a semi-automatic handgun. The shorter, rimless, bottlenecked cartridge is, however, a very feed-reliable design that has be tested and accepted before with cartridges like 7.62x25 Tokarev, .30 Luger, and .357 Sig.
Also, the rimfire cartridges such as .22 Magnum do not have a particularly good reputation for reliably ignition. Centerfires like the 5.7x28 and most other handgun rounds are much more reliable in this respect (I suspect this is one of the reasons that the .25 ACP has remained as popular as it is).
Personally, the only way I would trust a .22 Magnum for self-defense would be in a DA revolver because feeding is a non-issue and a misfire can be remedied by another pull of the trigger.
The only way that I can buy that Wyosmith's M48 got .22 Magnum velocities comparable to 5.7x28 with the same weight bullets is if his gun has a much longer barrel. Since he said
equal bullet weights and
equal barrel lengths, I'm more inclined to think that his chronograph wasn't functioning properly, he got hold of some abnormal ammunition, or he's simply exaggerating the .22 Magnum's velocities.