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I think it's because:
1. A lot of people are fine with reading on tablets, which have fallen in price and weight, while improving screen quality.
2. Existing e-ink readers are "good enough" for many users. Probably many e-reader owners weren't even interested in the frontlighting improvement.
3. Carta is not a huge improvement over Pearl. (This is a really big, and often overlooked one, I believe)
4. Devices are generally subsidized by ebookstores.
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