It maybe simply comes down to the fact, that most pages are not created for B/W screens. As soon as you view a page, which has a colored background or font, the reader will render it to some shade of grey.
Most of the very popular pages have a mobile version (google, facebook, etc.), which works fairly well on the T1. Large pages can be a bit difficult.
It still is one of the best browsers on an 6" ereader out there. (For fun I just tried the browser on the PB302. Believe me, you really don't want that browsing experience).
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