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I'd definitely want this analysis to be true. Which from experience means it is widely optimistic.
The 6% of books available is interesting, but I'd really like to know more about the breakdown of those c. 125,000 books. The reason is that I think some books are much more likely to be bought in electronic format than others (and I'm not convinced that all those 125,000 books are really available in both formats [in roughly equivalent time frames]). This will skew any prediction on likely sales which assume that one day all books (except, possibly, Beedle the Bard) become available electronically.
In the same vein, it would be interesting to have a breakdown of the buying habits of Kindle owners -- if they (I wish I could say us) consume books at the same rate oil companies make money, then the 6% might be a little high. [Hint: predicting corporate tax income for an entire economy based on the profitability of oil companies may results in minor budgetary errors.]
Finally I think we are still a little bit away from an "E-Ink iPod". It sounds like an excellent device, but the underlying technology probably needs another generation to hit the point at which it can really capture the imagination.
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