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A few points, and yes I'm going to be defending devices I own, so take it for what it's worth.
1) The Nook Color does have an active developer community, in fact it has several. Both at Nookdevs and at XDA-developers. They've even got Android Honeycomb to run on it.
2) If you take a look at a high PPI LCD display you'll see the text is actually crisper than on EInk. My Motorola Droid has noticeably sharper text than either my Nook Color or my Sony 505 with Vizplex - largely because it has 266 PPI while the other two are both in the 160-170 PPI range. However, even at the same PPI density, LCD is usually crisper. It doesn't have the power advantages, and is backlit, but it can be very good for reading text - just not good for all users to look at for long periods.
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