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He probably left out one big reason why sales may not reach intended figures - the appallingly bad formatting of some DRM'd books on sale (particularly in EPUB). The books on this site, Gutenberg and other free sites are just so much better. As EPUB requires some expertise with HTML (hardly a new technology) this seems to have left publishers floundering around and trying to pass off shoddy product as a digital book. And If I buy any more like this I am going to demand my money back! People aren't fools and will vote with their credit cards. In fact, if a publisher actually advertised that their books were beautifully formatted they might even get more sales. (Hint, hint to book publishers!)
Yes, I think it will end up as fiction = ebooks, reference books either pbooks or subscription websites (like legal and accounting "books" are sold - with a subscription update service). But the tablet is still in development - maybe there is a colour e-ink type of screen with ultra clear graphics and low power usage just around the corner.
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