Those who are expecting a year old business to be turning a profit are missing the point.
So, too, who see Kobo as the "$149 entry-level e-ink ereader" as opposed to Kobo "the platform". Kobo's Android app is, I understand, superior to its e-ink e-reader. What Kobo is building is a reading environment, complete with social media, cross-platform bookmarking, device independence. The Kobo WiFi reader is better than the original Kobo -- faster, connected to your Kobo cloud -- and it arrived six months after the first one. Presumably the next iteration will still meet the "simple" metric, at a low cost, and yet be more capable. The Kobo book store is a core aspect of the Kobo platform and that continues to grow.
The point is very well taken that Amazon, Sony, B&N are much larger enterprises and the fact Kobo has gotten this far, this quickly, is the true testament to Kobo's achievement. Remember: they are focussed on the platform, global audience, and building their business on partnerships rather than going it solo. Will Kobo "lap" any of the other players in 2011? Maybe not. But in 2012? That's feasible.