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I dunno, to me the main business in books is novels and non-fiction, non-reference books (like political books or biographies or whatever).
That doesn't need color. And really, most stuff that need color, also need a larger form factor. Magazines, textbooks, even comics are going to be less than ideal on a small e-reader.
But if you have a DX size color e-reader, that's going to be very expensive. I mean, the DX is what, $400? Add color and you'd likely be more than an iPad, much less an Android tablet.
And on the flip side, since you don't really read such things for hours like you do reading books, I'm not sure how important e-ink is.
So I think Amazon might consider the NookColor tablet route. Especially as they have an Android store in the works, apparently.
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