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According to me you get the same result as taking a laptop with reflective screen outside in the sun. You'll be able to make out some colors, but not all.
I guess it does not matter whatever light comes in the screen, but whatever radiates out that can alter the color. So by the time sunlight passes the LCD layer and bounces back on the white/reflective background, and passes through the LCD again, it has lost lots of it's intensity. This probably could be a reason why colors aren't very visible on a device like this.
To me it seems just like a TFT screen with a white plastic background to allow ledlight to pass through it.
If so, the cons would be that those screens can never really be bright.
The pro's would be they don't really need light.
Another thing might be, the more sunlight or outward light, the more the colors are washed out, even with backlight on.
So this device will be good enough to see black and white movies with minimal colors that are barely viewable (kind of like you set the saturation of your TV to 15% or so).
The problem could be not really solved, but improved by creating filter thin LCD screens, reducing the thickness of the screen, perhaps making them in hard plastic instead of glass. The closer the distance from the sunrays bouncing from the white background to the actual LCD crystals, the clearer and better the picture will be.
As far as battery comsumption, the screen itself uses about the same battery consumption as a whole Kindle DX. It's not that much different from our current LCD technology (just optimized to make the LCD transparent instead of grey greenish.
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