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My take is that the e-reader market is not dead, it's waiting.
For what?
Well, obviously, color e-ink is one thing that's been perpetually on the horizon. When/if the day comes, expect a large segment of the market to upgrade.
Another development that might move a lot of e-readers would be an e-reader with an electronic ink screen that acts much more much like a regular Android tablet, including the Play store. It would probably have to have significantly faster refresh than current e-ink. But it could really be sweet.
I'd also buy an e-reader with built-in Palm Pilot emulation, but I'm pretty sure that's just me.
Really, though, what the market is waiting for is something much better than what they have now, as opposed to marginally better.
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