Here is my 2 cents as a new Nook Color owner. Please note that I've never owned an e-ink reader.
I really like the LCD screen for reading books in darker places, like riding the bus in on my early morning / late afternoon commute, or sitting propped up in bed. The backlit screen means I don't need a reading light; the page glows back at me & is very readable (I changed the color scheme to the tan background with black text). The screen resolution is such that I don't see any jagginess of the text.
I for one am very happy with my purchase.
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