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Mark, you might be right on one approach but consider our E-ink resolution today is barely adequate in terms of pixels per inch. We can't afford to reduce it by a factor of four (assuming CMYK would be required. CMY alone might work, delivers only brown in inkjet printers though).
There are probably other challenges beyond the visual. Partial colors (greyscale for us now) requires a consistent fractional movement of the pigments. Scaling that down might make the results uneven. Also the electric fields of adjacent pixels might interfere with each other below some size.
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