In the previous discussion on this, I mentioned that hardware issues clearly needed to be addressed. (Okay, that's all the patting myself on the back that I'll do here!)
That Amazon quote-- "We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday." --left my head swimming! Who writes for these guys, Groucho Marx? But seriously, folks, I like the Long Tail concept... anything that would make the readers more useful and practical.
Anyway, I think they're spot-on in expecting (hoping for?) a new selling model that will put the device in demand, and give paper-lovers a reason to switch. Maybe we need to get a thread started debating that new selling model?