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Bigger screen.
Screen readable in the direct sunlight on the beach.
Screen that resembles paper.
Screen that doesn't emit light, but uses ambient light sources, with a possibility to use frontlight if you really need one to enhance the text.
Much simpler user interface.
Fewer distractions from other apps and net and messages people typically have on a phone or a tablet.
Higher screen resolution than cheap phone.
I have read on LCD screens for many, many years. Beginning with the amber colored plasma screens on luggable computers from late 1980s, through the really nasty color LCDs on cheap notebooks and first PDAs, through trans-reflective "black on gray" ones (like those on first generations of Palm Pilot), to the newest AMOLED hi-res marvels. Yet, when I want to sit down, or lay down with a good book I reach for my 6" e-ink reader.
But, many people prefer their Fire tablets from Amazon, or iPads, or phones. And that is great. Diversity and choice is wonderful.
Just yesterday Amazon had a big event and they did not introduce any new e-ink device. There is nice blog post on Teleread.
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