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Of course it can.
While LED lighting reduces the flicker associated with LCD screens, it does nothing for problems such as power consumption and unreadability under external lighting.
Colour has got nothing to do with reading books, and those who whine on about it merely betray the fact that they're not looking for a book reader, they're looking for a smaller version of their computer screen. LCD screens can produce only a poor facsimile of a glossy magazine, but there may be those who are fooled by the Apple shine into accepting it.
eInk certainly needs a lot of work still, but standard LCD screens (LED-lit or not) aren't the answer.
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