Interesting ... but me thinks ebooks will ultimately supercede pbooks, and if anyone wants to speed it up, start replacing kid's books with them. That will grow the next generation of ebook readers and the need for pbook experience will slowly go away.
The only gripe I have right now is cost and lifespan of the device *and* ebooks. I don't really care about DRM, feel of flipping the pages, smell of book etc. I care just a little for anotation though it would be a bonus. If a DRM format can last say 5 yrs or 10 yrs, that's good enough for me. If it can convert itself to future DRM format, even better!
For me, if the cost of each device is low, then I don't mind having to change devices every 2 yrs, but only if the format on the old and new device is either a) convertible or b) useable without conversion.