I disagree improvements are being made. The displays are getting more paper like. Sony knows what its doing as touch screens are the future of user interaction in e-reading maybe they didnt get it quite right with the resistive touch screen last time but the 350/650 sounds like its going to hit the nail right on the head with a touch screen that doesn't impact clarity or cause glare.
Amazons got their own very good ideas with WiFI & 3G purchasing and cheap ereaders unfortunatly they are also trying to monopolize the ebook market with ebooks in a propriety format.
Theres a bit of a war going on between sony and amazon thats driving development and the innovations they are coming up with are great imo. I'm looking forward to buying a touch screen colour e-ink reader that will let me download new books wherever I am