I don't see many people with laptops or netbooks either. These, like ereaders, take up considerable space and are not cheap, so I can see people afraid of being stolen their precious goods in such public spaces. At least in places like where I live. Indeed 2 of the very issues I reasoned about before getting myself a smartphone: much more portable and doesn't look particularly unlike a regular cell phone everyone owns already.
That said, here most people indeed don't read, they obsessively handle their phones zapping through myriads of useless trash music, sending mindlessly void SMS to friends and eventually watching some youtube numbness or soap opera via digital TV. It's a true model of a culture.
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