This one is plausible, given that the existing Nooks are clearly not going away (in fact, expanding to Walmart stores).
I expect the Nook Color, if it exists, to have a more or less standard LCD screen.
There have been bad ebook readers with this configuration, but a relatively low-end 7" Android tablet is a very good fit to B&N's existing Nook software base. It is all about the software, I expect the Pocketbook IQ to be significantly better than the Pandigital Novel for example.
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