The reasons I can see to bring out a new one would be:
Lighter weight
Better battery life (at least double)
Fix the bugs
Otherwise I think it compares OK to the competition. Not a class leader overall, but good enough that I don't feel any need to upgrade. And there are still valid reasons, depending on what you need, to make it a top pick.
I would like to say B&N is too busy with the Color to concentrate on e-ink much longer, but then again they have yet to deliver Android 2.2 or their marketplace. So who knows what they are up to or what they are even capable of delivering.
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