I think you are missing the point here. Yes, individual devices are better and will remain so, but having a single device that does everything is convenient, and the better that gets the more difficult the cost/convenience justification gets for buying the individual devices. This means that more people will opt to use the smartphone for things they don't do very often and won't buy the dedicated devices, which will erode the market, which pushes up prices, which reduces the market, which......
I have used smartphones for years, and have used them for casual reading. I have switched to an iPhone 4 and the display on that is a joy. Yes the screen is small, but a tap to turn the page is not arduous.I will probably use an ebook reader to take away on holiday, but for casual commuter reading the iPhone is more than sufficient. By the nature of this forum we are all readers and likely to find the cost of an ebook reader acceptable, but if other people don't the market will wither and die.
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