I think about 3 different sizes of ereaders would be nice; though perhaps two would be adequate with a rollable screen technology. However, a rollable screen might have problems with inputting data as well as fragility issues. I think, realistically speaking, ereaders are going to have to do more than just display books to be really marketable (at least in the near future at the prices they are going to be at). This is especially true considering the fact the ereader IS a computer and will be capable of more wether or not it has the programs to do more; might as well enable the increased capability.
First a small pda-like device that fits in your pocket would be good for pda-type activities as well as being an ereader. This is about the size of a Sony ereader.
A lot of books are bigger than this however, and for some things the size difference is very important (especially with text and eyestrain). A lot of Dover books (a publisher), for instance, are just about 2" bigger along the diagnal. Since more and more classes at colleges these days seem to be using them, a larger display that is a more natural fit and still very portable would be nice. This is about the same size as the Iliad.
Then a nice large screen for when you don't have too many portability worries , or for when you have time to fish out something from a backpack, etc. Something with say a 12" screen or so (perhaps the size of an A4 or Letter page); still very portable, but not as readily handy as the above two. This can handle larger books and other "print" media in a more natural format.
All of these should have a means of inputing data into the device, preferably a touch screen like the Iliad. Additionally, they should all have wifi and perhaps bluetooth for syncing purposes (with each other and with a computer).
A price around 300 dollars (American) or less would be ideal (for each unit; assuming the differing sizes of screen and miniturization requirements cancel out so the size of the unit doesn't alter the price). This is very affordable for most people, even if it is a bit of an investment.
A memory size of a couple hundred megs is sufficient if they have compact flash readers in them, as flash is getting ever cheaper per meg and their capacity is doubling each year as well.
Ideally, of course, the display technology would be eink-like, but with a much faster refresh rate
As for software, I'd want them to run a linux OS and be open for anyone to develop new software for them. The capability to handle most any sort of "text"/graphics file, though not necessarily with color, would also be essential.
As for DRM, I don't really care for it and I honestly don't think it is necessary. IMHO, the nice compromise between no DRM and stringent DRM is just ecoding the identity of the purchaser into the product they purchase (some companies do this with PDF books). It gets the job done sufficiently and I know no one that doesn't understand the need to financially support the things they like--and studies show that people that "pirate" more also purchase more, so I don't think piracy would be much of an issue in a non-DRM world, so long as people could actually buy what they want in the format they want.
I suppose 3 sizes might seem a little crazy, but I honestly think I would buy 3 different sizes of ereader; starting with the middle or larger and going down probably. There is definitely a niche for each one.
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