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I'm not so sure. If we accept that a multifunction device will always need more power, more ports, better speakers, and probably a larger screen size than a dedicated eReader, then regardless of improvements in screen quality there may always be room in the market for a smaller, lighter, cheaper device optimised for eReading.
I can foresee a time in not too many years when dedicated readers are under $50 and are as mainstream as paper books.
Graham
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