I suspect that they got a deal on old stock of Kaleido plus and convinced themselves it was OK, or there was a huge delay between design and getting to market.
The Kaleido 3 seems to be the "best" compromise color eink. The Gallery panels (Advanced Color ePaper = ACeP) are not traditional eink at all, and while brighter and hugely better colour they are only suited for price labels, digital advertising and other largely static poster applications, maybe in bright ambient light without front-light.
I wonder did the InkPad Color 2 sell out simply because the panels were all used up?
Anyway, while I'm sceptical about color ink to read novels, it might suit some for color graphic novels/comics. Will various Android library apps like Libby, BorrowBox, KU borrows (or Kindle for Comixology) and Solar work on it?
Edit:
Kaleido 3 was only released earlier this year, according to Wikipedia.
https://en.wikipedia.org/wiki/E_Ink#...odels_of_E_Ink