I must also say that this article seems like a bit misleading...
The Devices are not perfect yet, but that's not really an issue yet. The only thing I would say is truly lacking is readily and easily available LEGAL content. That has also been one of the big problems when ebooks first appeared...and it will continue to be that way until all the DRM problems are finally solved. Either we need one universal (DRM or no) format or we need ebooks that can easily be converted to multiple formats.
Calling ebooks a failure is clearly not realistic...the success of the Sony Reader has clearly surprised even Sony...and they built and advertised the thing...