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I don't think it's all that surprising. E-book readers aren't for everyone. For one thing, a moderately priced device is still $199, and that would buy quite a few paper books. To the average consumer, it's not worth the price. A recent study (for which I cannot find the link ATM) found that if you read one book a year, you are in the top 1% of people in the USA. I'm sure many of us on this forum are about 5 standard deviations above the mean.
Many of the people I know who got E-readers received them as gifts: "What do you get Dad for Father's Day?" or "So-and-so is going to have surgery and won't be able to lift books, so we're chipping in and getting her an E-reader for the recovery."
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