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Combine the idea of the PRS readers, a Viao Netbook and a Pixel Qi 3Qi display and I bet Sony sees a better market with a much larger upside...then they can partner with B&N and their dedicated reading devices and you have a very attractive package which can satisfy a wider range of end users. And do it all from a single production line vs. the cost of multiple factories and production lines.
I see something like this to make a lot of sense...had the 700's been a winner it might be a different story but eink displays might have simply not advanced as fast as Sony anticipated so a shift to an instantly available tech is a prudent move.
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