I concur that the caching issue is a bit unclear. However it is my assumption that since they will support multiple browsers, on those devices it will just use the browser's existing cache. Otherwise they would need plugins for every browser that allows access to some other part of the hard drive, and that could create a security risk for the end-user.
I doubt any currently existing ebook readers support this technology right now; after all few are Internet-enabled to begin with. I suspect it will not be particularly easy to implement, so that part will probably take awhile.
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