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You were right when you said it depends on the paper. Another very important factor in determining the readability of the text is the number of pixels per inch the system is capable of displaying. 12:1 is generally in the neighborhood of a typical quality hardback book, but again, there's no set number to reference as it depends on both the ink and the paper the printer used. I've seen numbers quoted before that range from around 10:1 up to 15:1. 12:1 is going to be a serious improvement over the 7:1 of today's displays, certainly. 300 dpi will provide sharpness that is more or less the same as you'd see in a typical book or magazine, so until display manufacturers are able to hit this level, the text is still going to look a bit "fuzzy" compared to the printed page. What you get with eInk (around 170 dpi) is generally far better than the pixel density of your average LCD display.
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