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I doubt that Amazon will get rid of eink anytime soon. They'll probably have both in tandem, and get as large of the market as possible. I mean, it is working for B&N, so why not Amazon?
As far as things go for ebook readers not being enviromentally friendly, you have to kind of factor in the total impact. Yes, the initial production of the device has a negative impact, but is it greater than the production of the number of books that the owner would have in paper otherwise over the lifespan of the device? My reader is still going strong, and has a few hundred books under its belt.
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