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I've had Smartphones since 2000 and tablets since 2005. I have a PDA, 4.3″ to 6″ smartphones, various tablets up to 10″ and one spare 12.1″ laptop that converts to a tablet with wacom. I developed a 4G smartphone in 2007 which ran Debian and by 2008 a choice of traditional QT GUI, Ice Window Manager and Zune-like QT phone edition. It had Thunderbird, Firefox, VLC, USB-A host, micro-USB slave, separate ear, mic and line 3.5mm jacks and SD-Card slot. So I know what I'm writing about.
Even if there was an eink like panel with 300 dpi true colour (colour eink is about 4000 shades and lower resolution) and able to do video there would still be a market for a dedicated ereader. IMO Sony made a mistake switching to Android for the T1. Android is a bad fit for ereaders and pointless without the Playstore. I have an Android eink with Playstore and it's only used for the Bolinda Borrowbox Irish Library app. Though a 7.8″ 300 dpi with and SD Card slot, 3.5mm jack and BT it is the worst to use ereader. Even the Kindle KK3 (167 dpi, 6″, no touch) is better simply to read ebooks.
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