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I think it's just a very very cheap PC. I guess some would let them get away with it because it's in color but what makes a good e-reader is it's long battery life, size and how well/many formats (good programs cost money) it can handle. I think we are about to see a lot of junk in this new (not really) electronic device market. We are going to get a bunch of start-ups trying to get in and make a quick buck on people who don't know any better. China is going to be very busy with poor knock-offs. Ever notice how many fake ipods there are in Flea Markets, soon you will be seeing readers.
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