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Given how fast technology is progressing, I think we'll see a multi-purpose device within 4 years or so. It will be able to handle ebooks, of course, as well as music files, video, and it will have wireless capability. Beyond this it probably won't be too hard by then to have it able to read purchased books just from the text. Voice synthesis is progressing pretty rapidly, so I don't think this will be much of a problem within my above time-frame. I can easily see the required technologies (e.g. e-ink-like display but with color and fast refresh rates) all appearing around the same time.
I suppose I essentially see the one-sided use of the device and the limited screen the current reasons e-readers won't take off right now. By the time better screens appear that are competetive with the competition, there will be no reason not to include most of the above software (including voice synthesis, imho). Perhaps ebooks will even be released specially formatted to make use of the different voices such software could offer. It would never be as good as a (good) human reading, but far cheaper and easier to acquire. A release like that, something that opened ebooks up to audiophiles, audio book listeners, and as a way to view any book or magazine in electronic format...that would really catch on.
Of course, if the screen technology comes around quicker at a low enough price, then we'll probably see multi-purpose combos sooner (though without automated reading).
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