Extremetech has a story
NCD technology from DEMO 2005 that looks like a viable competitor to other e-ink type displays. Indeed, if all it takes to move an LCD fab to this tech is $20000, it could emerge as the leading e-paper technology.
I have to admit the iPod does look nice in the rather small pic. That said, I can't seem to find any mention of what kind of DPI they are getting. Looks like enough, but I'm wondering how it seems against Toppan's hi-res paper (which seems to be at about the same stage).