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For reading EPUB files and the like, where the viewing program does the kerning, and fonts with thick strokes can be chosen, a lower ppi display doesn't do much harm. You really see a problem though when trying to read PDF files on low ppi displays. The fonts are usually thin and intended for ink on paper, and the characters are kerned for the same, so that the text becomes blurry when anti-aliased for the much lower resolution e-ink screens. This makes reading technical PDF documents much harder on the eyes than, say, novels in some HTML-based form.
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