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The problem with comparing the Cybook to an iPod is that the iPod of devices has brand-recognition already built-in, whereas not many people have probably heard of Bookean.
I think that fromt he company's perspective, the branding on the front of the device would advertise more and possibly draw more consumers their way. After seeing how large the logo has been made... it looks too gaudy and intrusive, that might actually scare away prospective buyers. You should ask yourself why the logo has to be so large and loud.
While I already cast my vote for keeping it on the front, before seeing the mock-ups, I think the the cleaner Cybook looks much nicer and more professional, which is what most people would prefer in the end. How about having some field-tests to see people's reactions to both styles? That's, perhaps, the best way to judge peoples responses.
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