I am wondering about this, too, with my Pocketbook 360. Comparing some artwork in epub / HTML books between iRex DR 1000 and the PB clearly suggests that this is 4 color vs. 16 color rendering.
The example photos supplied with the machine also don't look like 16 color dithered display (there's a picture of a white swan ... not much structure to see).
I loaded a certain picture on the laptop and converted to 4 / 16 color dithered grayscale and thusly reproduced quite nicely what the two readers do. So I wonder, too: Can the Pocketbook hardware do 16 gray levels or not?
It wouldn't be a total deal breaker; for pretty graphics at proper scale the DR 1000 is much nicer anyway (though it totally loses on portability / power management); but nevertheless, the product info could be considered misleading...
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