Again? Wasn't this a story from like six months ago?
In the end, technology itself is transitional.
Many klds won't want this until they start actually reading instead of Facebooking or playing games. The replacement cycle for most users is not like standard technology. Mine flips plenty fast, stores plenty of books (more than I'd ever read in a decade) and has easy on the eyes resolution. I don't need or want it to do anything else. I'm sure many readers are the same. Outside of device failure, I would probably never replace the reader or buy another one.
Tablets are a different beast. They do many things and in some instances can be used for reading, but for me, they suck at reading. I read on the bus and the glare renders the device useless. At home, it's a different story.
e-ink as a company does have issues. How do they grow when their target market doesn't need to upgrade and there are some devices better for some documents like LCD for PDF? It's not a company I would invest in, but they should be healthy in the long run if they don't believe they have a pure growth market.