No doubt everyone's read this:
Why Nobody Will Buy a Color E-Ink E-book Reader
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E-ink may not have a long future, but until LCD can learn some very difficult new tricks, it'll survive. Diluting that purpose for half-baked progress to compete with tablets is the wrong direction for e-ink.
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And then there's this response:
Why people will buy a color E-ink e-reader
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But I still think we’ll see a color E-ink screen (if not E-ink then Mirasol or Liquavista). Another detail I’ve noticed is that $200 Android tablets all have really crappy video ability and general poor performance. This gives dedicated e-readers a pretty good shot at competing in that price range; basically e-readers do one thing well and cheap tablets do a bunch of things poorly.
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Of the two, I find Nosowitz much more convincing.