[tomsem]

I think we overestimate the attraction of eink devices, based on our personal experiences.

It's true, that even at the $359 I paid for my Kindle early last year, I could justify the expense because I read a lot (or aspire to...), and used to spend $20-30 per book on a regular basis, and the non eink devices and ebook stores then didn't stack up very well. But even at $50, something that is good only for long form reading is not an attractive proposition except to heavy readers who have not yet made the move to digital, or are looking for a backup e-reader. All it will do is cannibalize the non-digital book sales, it won't make readers out of people who aren't, and it won't keep the tablet/smartphone/media gizmo market from exploding.

Occasional readers will be happy with reading on their iPhones or iPads or Android device, now that they have, or will soon have, access to a number of ebook sellers and associated free reading applications. For myself, I think it is very likely that the next generation iPod Touch (326dpi screen) will replace my Kindle for on-the-road reading. A 5-6" eink screen is not portable enough, and for more specialized reading (eg PDFs, magazines, newspapers, manga/comics) is not nimble enough. And I don't know that a 3.5" eink screen would sell well as a dedicated reading device, though that might be an interesting attempt to achieve a $50 price point and improve portability.