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I'm not sure anything in that article defies common sense expectations.
More and more people are seeing these devices, and I suspect a good number of those people have become more hesitant after the experience. I've not met one person in person who took serious interest in ebook readers after seeing my Sony PRS-505 and what it could do. It's a low-end piece of overpriced technology with awful navigation and a mediocre display.
I just finished another book on it and have decided to set it down while I go back to my paperbacks for a few days or weeks to give my eyes something more pleasant to read. I don't hate reading on it, but it certainly is a downgrade in reading experience that I think I'll be glad to get away from for a bit.
All the talk about how epub or other formats can't do a high-end rigid document for typographic reasons is a bit academic anyway...it's a bit futile to expect anything pretty in the first place on ebook reader devices.
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