A dedicated device makes no sense for Apple.
Adding eBook software to a device you already own...let's say, an iPhone or an iPod Touch, is something Apple could easily do, but I'd honestly rather they left this to third party developers.
FictionWise could port eReader, Mobipocket could port...Mobipocket, Adobe could port Digital Editions (though I suspect they'd work on Flash first), and GowerPoint would port uBook. There's no reason Apple has to do this.
I for one wouldn't buy a $500 eBook device from Apple. But I would spend $50 to put a good text reader on the iPhone I already bought. The screen, battery life and storage capacity on this thing all work in its favor and shame every PDA I'd even owned. With WiFi and Edge, you could even do book buys "over the air" same as the Kindle does.
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