I think people are reading so much more now, then before e-readers.
The reason why e-reader sale is going down is probably more related to saturation of a market then with mindless entertainment. Besides dedicated e-ink readers are not even capable of supporting Angry Birds lol
I have Kindle3 keyboard and I have no intention of buying Kindle paperwhite or Kindle fire. I will use it as long as it serves me and its serves me good so far
People of course are more inclined to replace tablets, ipad, iphones and so on, then e-ink readers. But then again, those things are not there for reading primarily.
That's why tablets sales are rising, e-reader's sales is dropping. You dont get much more changing e-ink reader every year. (Same goes for tablets/phones, but that's just my opinion, a lot of people don't agree with me and buy them anyway)
What Amazon should do is lower ebook prices and increase their sales that way. What Barnes and Nobles should do is sell internationally and increase their sales that way.
There is no point in coming up with new e-readers every year. They are emulating apple way too much, and nobody looks at replacing kindle4 to kindle paperwhite in quite the same way as replacing their iphone4 to iphone5. I think both is silly way to spend your money, but most of the people these days just dont care
