Gemstar proved that subsidy alone doesn't work for ebooks either.
You need subsidy, you need current hot content, you need prices that seem "fair" to consumers and you need a device people don't have to think about using or worry about breaking or losing. Remember, you can put your entire library in the palm of your hand also means: you can lose, break, have stolen your entire library (and no DRM outfit is going to replace your stolen, lost, broken content...)
University usage? The day you can take your iLiad and drop it in a bucket of beer, pull it out after 15 minutes, set it on fire, stomp it with your shoe to put out the flames and then wrap it in duct tape to keep the binding from falling off. That's when you've got a university grade ebook reader.
Books can soak up an amazing amount of punishment and when damaged can be field repaired with various materials readily available in most locations around the world. Ebook readers however are delicate creatures that sometimes can't even survive the process of delivery to their new owners, and when damaged must be sent to exotic far off places for repair/vacation. Even thinking about repairing it yourself requires you to turn yourself into the maker for a warranty violation.