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I suppose the reason why the bookstores are having this lawsuit is that they want to sell books to people who own Kindle e-ink readers (the problem doesn't exist with the Kindle Fire). But it seems to me you could go from the other direction and create an e-ink reader that runs the Kindle app as well as Adobe DRM. Then that way the customer loses nothing by switching (they can still easily access their Kindle books).
I am not sure in the long term it makes sense to encourage customers to continue to use a Kindle. The Kindle represents an advertising channel where Amazon can continue to tempt customers to their store. If it is possible to read DRMed epub books purchased elsewhere on the Kindle, won't that totally make the Nook and Kobo less appealing? Even if Amazon allowed them to put DRMed azw on them, I don't think they'd want to.
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