Right, "open" wins, and so THAT's why Microsoft owns so much market share (pick one -- OS, Office apps, browser, Xbox, programming languages)? Even in the face of "open" competitors such as the most excellent Open Office suite, which I do like. Nice try.
Apple is an even better example, more applicable for their hardware success.
I think Tim neglects to consider that e-readers are all about the books, not to mention the years of e-reader existence before the Kindle. Amazon is the 800 lb gorilla in books (and magazines, ...). This device is mostly a portal to the content. Any "open" solution that wants to displace the Kindle has to meet or exceed the Kindle's portal experience.
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