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To my reasoning, Amazon don't need to produce a colour ereader (of the LCD variety) because there are already colour ereaders out there that run the Kindle software! The iPad and Android platforms all have Kindle software versions for it, and Amazon just recently announced that periodicals (previously missing) will be coming to those platforms as well.
I don't see any business sense in developing and producing a device that will basically be a clone of an iPad when Apple already dominates that market. I think the Nook Colour sales will reflect this...
Amazon currently leads the market in e-ink reading devices, and should play to their strengths. When the colour e-ink technology becomes commercially viable, then that should be their next step.
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