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The dedicated eReader is unlikely to become more than a niche market but it is one that is likely to suit a large and growing demographic. The older reader.
I notice that Tom's article seems very US centric. People outside the US also buy dedicated eReaders and they will also affect the future market for dedicated eReaders.
This being the case as long as companies can make money making and selling dedicated eReaders someone will do so. But technology marches on perhaps someone will come up with screen that is better than eInk, can play HD full colour films, is unbreakable, cheaper and uses even less power. If mobiles and tablet were fitted with such screens I could see dedicated eReaders as we know them disappearing.
eBooks are here to stay (at least for the forseeable future) as they can be read on many types of devices.
In light of the above I think that dedicated eReaders will continue to be around for a while yet as a niche market it is although the number of models is likely to reduce. I also think the glory days of high and increasing sales are over. Unless interest starts booming in countries who have no significant eReader base as yet.
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