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All the things you say you can use this device for and all the options it could have are things you already see on the web, so your xbook is nothing more than a device with a web browser. And just like your computer doesn't usually have multiple independent displays, I don't think it's necessary for a book format device. It makes manufacturing more difficult and expensive, and doesn't provide any real benefits. The codex format is used for paper books because it's cheapest, you maximize the use of the available paper surface, not because it's necessarily better than other formats.
I use fiction books to imagine a world, I don't want a movie that dispels my image of what is happening. And when I'm reading I'm in the "zone", snapping me out of that by making me click and do something completely different I'll lose the continuity. I think that's one reason why most people don't fully read web pages that contain a lot of text (that is all part of the same story).
And one tip if you are going to make this device: videos don't require a huge portion of the screen when they're not playing, as they don't provide any information then. When they are playing they require all your attention so you don't need the text anymore. Solution: thumbnails that cause a video overlay when clicking on them.
p.s. it's just a tablet style netbook, perhaps with two displays, it wont cost you millions to develop a prototype, $1000 and a bit of soldering would probably be enough, begging others develop it for you makes it less likely it will come to exist, cut you out of the profit loop if it is successful, and to me shows you're just not that interested in it.
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