I agree with most of your points and agree that Sony will dump the reader before long.
BTW, I have both a reader and a Kindle and both have good and bad features but generally I prefer the Kindle. I will keep the Sony until it dies and would choose to use it if I were to go somewhere where I could not charge it. It does have at least 2-3X the battery life, even compared to the Kindle with wireless off and turned off when not in use.
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The Sony Readers and the Amazon Kindles will BOTH be gone in 5 years or LESS.
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No way. The Kindle will probably mutate into a more advanced form and may even be called something less silly, but the idea of a portable device from Amazon that you can read books on will remain.