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I agree they appeal to different consumers, because quite frankly one is an e-reader and one is not. The Kindle, Nook classic, Sony et al are devices created and marketed to visually simulate the experience of reading text printed on paper; it's the whole point of the technology and the very characteristic that created the market. The Nook Color does not do this. It may do other wonderful things that make it a great device worth owning, and some may find it perfectly suitable for reading books, but it's not in the same category.
This isn't Kindle loyalty on my part. B&N also sells the regular Nook, which by most accounts accomplishes the above mentioned tasks nicely and is a good product. I don't quite buy the notion that the Nook Color is the successor to the Nook. B&N would need to be remarkably foolish or just want to exit the market populated by the Nook classic, Kindle, Sony Reader and their ilk entirely. Amazon did not continue to produce the Kindle 2 after releasing the Kindle 3. B&N sells the Nook and Nook Color side by side.
I suspect a new generation Nook e-ink reader is forthcoming and will be surprised if it isn't. If they've made it known that they have no intention of doing this, forgive my ignorance.
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