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The specs in the article are a bit light, but it seems to me that this is just another incarnation of a previously failed MS device. I forget what it's called, but it was an LCD tablet that wirelessly connected to your home PC, running WinXP.
In both cases, these devices can only show you what is being served up by your PC. You can't take the device elsewhere and read a book on it (or do anything else). Just as with the previous product, this is a stupid idea and will fail. A few people will find it useful to them, but the vast majority will not, especially considering the cost of the hardware.
The only reason MS does a product like this is to try to increase the adoption of its operating system and related software. They don't ever do hardware that is genuinely useful without their other software. Yes, I know they are a software company. However, they are big enough to actually turn out useful hardware designs that aren't crippled and extremely proprietary. They just chose not to. (My opinion, of course).
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