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Jeff Bezos discussed this a bit on his last visit to The Charlie Rose Show, where he was asked if he would try competing with Apple's iPad and the whole touchscreen/tablet trend, and he firmly said no. Instead, they would focus on non-backlit devices.
I have to agree with this approach, as (1) from a purely personal reason, I'm not keen on touchscreens or tablets anyway, (2) Amazon would be crazy to try competing in the same technology markets against Apple for obvious reasons, and (3) if you have an iPad or tablet, how much easier is it for you to be distracted and do other things besides reading ebooks? A dedicated ereader should not have to be an all-in-one type of device, but be something that does its job well of conveying an author's words to the reader in such a way that they're not focused on the device but the content of what is written. If that means ereaders are destined not to break completely "mainstream," then so be it. Otherwise, it's just back to backlit LCDs of one kind or another.
Just my 2 cents'.
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