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There's every reason to think that e-readers will get cheaper. Back in 1985, I bought a portable CD player, and it cost $250. Now, you can buy a portable CD player for about $10, less then the cost of a CD. MP3 players can be had pretty cheaply as well.
Of course, more expensive CD and MP3 players sell quite well. So long as someone can deliver added value, people will pay more. But for those who don't care about the added value, there's always the cheaper model.
I think it will be the same for e-readers, there will be a low-priced model, and more expensive ones for people who want additional features.
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