For me it was transitional.
I still think e-ink is the best way to read a book. It's just more natural than LCD. But I haven't used my original Nook hardly at all in almost a year. My 4.3" phone is good enough and in fact a better overall reader for my use for several reasons I won't get into here. My Nook is a good device that served me well, but I have no desire to buy a newer and better one.
There's certainly going to be a market for e-ink readers, but can that market support the devices being manufactured? The numbers don't look good.
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