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I think when US$300 will get you a multifunction tablet with a reflective bistable screen at about the size of the iLiad, that does what the iLiad does, but in color at video refresh rates (and with a better file manager/browser), they'll fly off the shelves. People will use them for ebook reading, and for tons of other things as well. That will probably be when the ebook market goes mainstream.
Meanwhile, I confess that I do now have a phone that takes pictures. I had a b&w phone that I only used for phone calls (and rarely at that) until last month, when it stopped working. I could have replaced it with a similar phone but color (the b&w model isn't available anymore) for US$15, or I could pay US$40 and get one with a camera. Since I periodically wish I had a camera and never remember to bring one anywhere, I went for the camera. I've used it three times, I think. I haven't successfully sent a picture anywhere yet, though.
These are phones with no contract, only pre-paid cards.
I must be one of the only people in the developed world who doesn't use SMS....
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