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Well, it's sad to hear that there is a decline in book-reading numbers, but I really don't see any danger of the market vanishing anytime soon.
I must admit however, that I'm rather glad Apple is not going to go into the ebook market...
The iPod is a very nice device, and iTunes works very well with it, however, Apple products as a whole rub me the entirely wrong way. They are incredibly pretty and always make me want to buy immediately, just for the design, but the lacking useability (I simply could not get used to that bubbly, garishly coloured interface...) and high prices just because they are "Premium" annoy me no end.
Apple is all about status symbols and due to their fixed hardware configs they have a certain stability advantage compared to PCs, but the quailty has been getting worse and worse (burning and overheating macbooks, iPods with crooked screens, ...) and Apple seems to try their best to lock you into certain software-hardware ties...look at the iPhone.
The Amazon Kindle is a pretty locked affair, the iPod of Reading would probably be even worse and it would almost certainly use outdated hardware at outrageous prices...
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