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The e-reader is here to stay, but of course technology will move on, so we can expect current e-paper displays to be replaced with something better in the future.
The basic needs of people who like to read will remain the same: a non-reflective, no eye-straining display, long battery life and little more. If at some point in the future a new display technology with such properties plus color, high speed and high resolution is developed, dedicated e-readers may disappear and be replaced with general purpose devices. I don't foresee anything of the sort for at least five years.
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