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I'll bet anything that color e-ink will look pretty bland (like from an old ink jet printer).
Worst part, it'll have 1/3 the resolution (and won't have ClearType).
Also, anyone thinking it'll play video (e.g. "better than video ipod") is in for a big disappointment. High refresh rates and eInk are almost mutually exclusive. The looser the ink particles, the faster they'll refresh, but the sooner they'll decay and the display will no longer be bistable. In fact, I'm already upset by how quickly the Sony Reader display decays. And, again, you'll have bad color.
The most use a color eInk display will have is in giving you a colorful UI. If you want to look at photos or watch videos, buy a PSP (not a video ipod). If you want to read, buy eInk. If you want both... I don't think any display technology on the present horizon promises do both well (ie high-resolution + excellent color reproduction/contrast + high refresh rate + reflection-based + ability to emit light too).
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