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The problem with buying an SD card in the store is that you lose one of the big advantages of electronic books: you are back to managing a physical inventory again, and that involved manufacturing costs, distribution costs, retail overhead, et al.
The second problem is what happens when the SD card becomes obsolete? Will you have any way of transfering content from the encrypted SD card to some new data carrier?
Finally, one of the touted advantages of e-book devices is being able to carry dozens of books around at a time; but carrying a reader and dozens of SD cards pretty much shoots the advantage in the foot.
Gameboy70 is exactly right: people do not consume audio and the written word in the same manner. Hence I think ebooks will remain a niche market for many years to come.
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