I guessed as much...or I had a hunch you can say.
People on Mobileread read few dozens of books a year. A lot of them read over 100. These I call book devourers behind their backs

I read anywhere between 30 to 50 books a year or more on a good year.
Most of us use Calibre to organize, tweak, and transfer our book collections. I treat my kindle pretty much as one HUGE omnibus with lots of books inside.
To us our kindles, kobos, nooks are paper book replacements not tablet replacements. We use them primarily to read.
A lot of us "hoard" our books on them so there is always something to read. Hell, my kindle is ALWAYS in airplane mode. I'm never online. I turned it once this year and the damn thing updated....but that's a whole another kindle jailbreak story...
Why am I telling you all this. To show you a perspective of avid readers in comparison to an occasional reader such as yourself. We worry about finding the next great book, not about whether our ereader can parry with a tablet.
We use them to read and we spend our monies on ebooks. And that's where we come to a crux of things.
Companies that make ereaders usually make their money not on devices themselves but the ebook sales. This is how this buisness is ran.
You ask
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Originally Posted by webroot
Btw I do hell lot of online reading on my phablet to the point of bleeding my eyes, shouldn't the eink comfort be limited to fiction lovers alone, that itched me to post this question
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Because they are made to sell fiction/non fiction ebooks. Nobody can sell you a web page can they?....well unless they are your web designer...but that's a another thing altogether. E-ink readers don't need to be made to surf the web, because the company that makes them can't make any money like that! But selling ebooks? Yeah that's the ticket
Same answer for your progressive question.
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Basically I wanted to understand why device makers have shown little interest to make eink device progressive. modern ereader were rolled out much before tablets but now they are far behind,
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They have been making them more progressive. I have a KK and PW2 and PW2 beats it easy. Ereaders need to have a design that will make reading books a comfortable experience. They don't need to compete with tablets.
Apples and oranges and all that