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Originally Posted by Dulin's Books

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Yep, that's what I'm thinking it'll take. Do those exist yet, or are they still vaporware? The Readius was announced for a long time and then abandoned.
It also won't matter if the final version costs more than an iPad; no $600 device is going to replace the Kindle or Sony Pocket Edition. The multifunction device can only beat out the narrow-focus version if the price is similar; the market for the single-use version won't pay for a swarm of features they don't care about.
They'll pay a little extra for a few features, but not triple-or-more for a handful of features they'd like (but wouldn't miss if they didn't have them) and a hundred features they'll never use.