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The idea of e-newspapers seems to be a popular one, judging by the number of tests and testers. Such results indicate that the state and usability of the hardware dictates the workability of the program. That means more work into the design, ergonomics, and operability of the device, by some organization that knows how to optimize the user experience... a task engineers sometimes have trouble with (no comments, please!).
Anyway, judging by user comments, Sony's Reader is probably closer to the mark than the older readers, so it would probably be a better fit for such a program, but it also seems to have some reported usability issues. Maybe an outside company or industrial designer could give them a design hand, or maybe a company like Apple should give it a good shot.
Making the device intuitive and user-friendly is paramount. A reader optimized for newspaper delivery could sweep such a market.
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