Google must be thinking that this will essentially be a front end for the Google Play store (particularly for entertainment like movies and books). At this price they absolutely cannot make any money on it.
I know this, I tend to have a fair bit self control when buying tech gadgets (hey my wife and I are still using a PRS650 and a PRS505 respectively
)... but this thing has me drooling at the price performance point Google hit here.
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Bill