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Well, to be honest, an e-reader really shouldn't need to be upgraded every year or two. So many people seem to want mini iPads out of them.
But yeah, I think what is going to make or break e-books is how the publishers handle selling them. That's pretty awful right now, but as more people get the devices, I think the publishers will feel more pressure from piracy, and decide they need to open things up and offer reasonable pricing, just like what happened with mp3s.
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