Yahoo News has a little more detail
here.
It looks like it uses a SSD, which means that Linux apps like FBReader should work. The question is, for $35 including dislay and touch screen overlay, how much can you afford for CPU/memory/storage/battery etc. Now if it has an SD card slot ... well ...
Anyway, it should make dedicated reader manufacturers sit up and look, after all it has to be more capable than say, a JetBook.