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Auto-dim on a phone with an LCD or AMOLED screen works just fine for me. LCD/AMOLED is a whole 'nuther thing - the exact opposite of eInk!
The e-Ink page background reflects ambient light, so the more ambient light, the more contrast you have and easier it is to read. So the more ambient light, the less self-illumination it needs.
LCD or AMOLED doesn't reflect ambient light, but instead relies entirely on self-illumination. The more ambient light, the brighter the screen must be in order to be visible.
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