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The market may be currently stabilising in English-language countries (where ebooks are now commonplace) and where a significant share for those into the idea of e-reading very likely already have an eInk reader which is only a generation or two old and therefore still very usable.
However, as far as I've gathered, ebooks are very much only starting to emerge properly in non-English language markets - even in some countries where they've been around for a couple of years, we're talking, what - 20-40,000 titles at best (French and German), compared to English where the number of books is easily 30-50 times that? And in other markets, we're talking about maybe having 500-1000 titles currently available.
That basically means that those markets haven't really had the ebook or e-reader awakening yet and are very far from saturation. Once the number of available titles becomes such that any potential reader will be able to browse and immediately see more than a handful of titles they might be interested in, the interest in e-readers in those markets should grow as well.
And I doubt everyone in the emerging e-reader markets will be going for multi-purpose devices / LCD screen devices. Some will, of course, but as with English-language markets, many people who read mainly fiction (and who are avid readers) would likely prefer eInk (and for many markets, it's also not insignificant that eInk devices tend to be cheaper than decent tablets).
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