I sense the reality is that as Kobo worked on new features, the limitations of the initial reader began to show
- insufficient memory
- some oversights in how the firmware upgrade process worked that made for a more complex upgrade
- the lack of a true "reset to virgin state" on the device
These made the initial plans for new features such as papers and magazines more complex, and these facts, along with the changed pricing in the marketplace (and new features in competitors) made them change their priorities.