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My sister was a big nook fan for a while. The nook was her first ebook reader and she bought several over the years.
My guess is that B&N's ultimate issue is that they were a me too product that never gave people a reason to by a nook rather than a kindle. They don't have nearly the selection of books that Amazon has, the nook is no better than the kindle and the B&N ebook store is pretty second rate. I would also speculate that B&N in general appeals to those who like to walk into a store and browse, i.e. those who like paper books rather than electronic books.
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