I still haven't seen any e-readers in public. However, I'm pretty much never on trains or airplanes.
I did go to a very large session of jury duty assignments. I was using my Kindle in the main waiting area and in the smaller rooms while waiting for the lawyers to question me. I did see lots of smartphones (iPhones/Blackberries mostly, some Android phones)
One very soft-spoken man asked me if I was online (I explained the Kindle has 2 models, one wifi-only and one 3G+ wifi, and that the 3G was paid for the lifetime of the device). I showed him how to turn pages and what a book cover looked like.
Since he was an older gentlemen and I use a fairly small font I also showed him how to change font sizes. He seemed impressed with the way it worked. When I told him the two prices, he looked much less impressed.
Price seems to be a big sticking point with people in public. If Amazon could get the price below $100 (k4, maybe?) I think they'd see a HUGE return on it.
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