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Some great points here. I don't think dedicated ereaders will disappear immediately, but I do think the trend towards convergence will eventually win out.
I remember wanting a PDA years ago, but could never justify the cost. Now, PDA,s are all gone with their scheduling, notes and contact management features all taken over by cell phones.
I used to carry an MP3 player and a cell phone. Now, my iPhone is my MP3 player.
When I looked at buying my first ereader, I decided to read on my iPhone for 6 months first to see if I would enjoy it as much as "real" books. I found my enjoyment wasn't diminished. But, since I found the screen didn't bother me, I then jumped directly to a 7" Android tablet for reading. It was only about double the cost of the ereader I was looking at and does so much more.
I think as more tablets come out and price drops, more people will make a similar choice.
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