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When it comes to consumer electronics you usually see one of two things happen over time: either rapid price drops, or performance/capacity increases at about the same price point. Sony seems to be following the latter strategy. It's not the one I would prefer, but it's normally how things work when the components dictate a price floor, which is the case with E-ink. The screen seems to enforce a hard price floor at about $300, which is where the Sony is sitting right now.
Given those circumstances, the PRS-700 is probably the best thing Sony could have done. It's not what I wanted, but it makes a lot of sense for Sony. It widens the range and provides tangible additional functionality for an added cost. By keeping the same screen it also avoids raising the price floor.
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