As I see it, it's a completely different device. It simply can't compete as a dedicated e-reader with the Touch or any other EPD e-reader. It doesn't have the battery life or the true readability in sunlight, and extended periods of reading tend to elicit eye strain in most people.

That said, the Touch can't compete with the consumption of non-book media. Graphic novels, children's books and cooking books almost always require colour. Browsing on an EPD display is okay, but it's nothing compared to doing it on an LCD screen with a significantly higher refresh rate. And you need that higher refresh rate to view videos.

Until Kobo implements colour EPD displays in their e-readers with much greater refresh rates than the Touch with its E-Ink Pearl screen can muster, the Vox isn't competing with the Touch.

I don't think it's really evolving their core e-reader product, either, with the exception of Pulse (which is being ported to the Touch anyway). It's a distinct product, more like a sister product of the Touch rather than the Touch's successor.

It's a little hard, though, to classify it as either 'an e-reader which is also a tablet' or 'a tablet with e-reading software'. The Fire, I feel, sits firmly in the latter category, the Nook Colour (unrooted/flashed) in the former. The Vox is a little harder to work out, though.

These all being my impressions from reviews, MR and product demos/advertisements. I'm happy with my Touch, and I'm holding out till the new ICS tablets hit the market early next year before buying a slate (primarily for graphic novels and casual gaming).