I can see advantages to having a dirt cheap e-ink reader with near unlimited battery life.
So it only holds 5 books at a time and you can't change font on the fly.
So what, you transfer from your smartphone (Where I'm assuming you can change the display settings for the output).
Your smartphone can hold all your books easy enough and you always have it with you so it's not like this 5 book limit is actually stopping you accessing any of your library.
Also if it does just store all the pages as images then it is effectively future-proof and can have any formatting (Yes, the smart-phone app may need updating to handle new file types and formats, but as long as there are no animated parts in the file the e-ink screen can handle them fine).
You could probably probably make a good case for publishers allowing you to lend the book as well (As it would, by technological constraints, be to someone in close physical proximity to you and they wouldn't be able to lend it on to anyone else)
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