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Granted, the technology is always improving, but the color e-ink screens we've seen so far have looked (at least, to my eye) washed-out and crappy. It's going to be a long while before they can approach something close to what we expect to see on paper.
It's true that technology can advance and get cheaper -- except when it doesn't.
Three words: Digital audio tape.
Now, I'm not saying color e-ink readers are dead in the water, necessarily, but as expensive and niche as the technology seems to be right now, it doesn't really look great for it. I think if you really want to read color e-books (which again, I think would fall into the art book, comic book, and maybe scientific text categories), an LCD screen can do what you want. E-ink is better suited for text-heavy books. I just don't see color e-ink devices gaining enough traction to bring the cost down. Not when most people will only be using the color to view book covers.
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