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I agree with the OP but more because this is an expanding market. When Oprah mentioned the Kindle that made it the Xerox of e-readers, what Joe Public recognizes. When Apple brings this iPad to market it will bring a new flood of people into the e-book circle regardless of how suitable it is. "A rising tide lifts all boats" so I figure it'll stimulate sales of other e-readers.
Now if Apple made this same iPad with a screen on each side, E-ink or similar on the backside, THEN the other guys would be in serious trouble...
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