Wow, a lot of Apple haters here.
I don't know how many of you follow Apple news, but this is just another rumor to add to the mountain surrounding Apple.
I saw this and quickly added it to the pile or other rumors: Verizon iPhone that is rumored EVERY year since the phone was released, 12" macBook, and MacPro X being fairly common and long lasting ones. Although, the later have been waning with the rise of the iPhone, and eventually I suspect the first one will come true.
Regarding this one. I wouldn't hold my breath. Several sources are speaking out against this one for the very reasons, someone else pointed out here. The OLED manufacturers can't even keep up with demand right now.
Then there is the fact that Apple doesn't need to release a dedicated eReader, they have an eReader that also plays the other media that they want to sell. Apple isn't really into the dedicated device business.
I do admit that a device sized between the iPhone and the iPad would be a nice addition to the touch device lineup that Apple is moving towards, I don't see them releasing one so soon after the iPad release, and I don't see them putting an OLED display in it even if they did. The prices are too high right now and the supply is too scarce.