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Don't think e-ink devices need to worry about the iPad particularly.
E-ink devices tend to appeal more to people who spend hours reading, partly because of the eye-strain argument and also the fantastic battery life - 2 weeks of reading on 1 charge can't be knocked.
While some people may ditch their e-ink devices for the proposed glitz and glamour of the larger, colour screen of the iPad - I wonder how soon this novelty will wear off?
I read in small doses on the iPod touch - it's useful at night due to the backlighting and is small enough to slip in my pocket when going out and about. The battery life sucks and it's not that different to the battery life of the iPad. The colour screen is nice with pictures but makes no difference for bog-standard fiction.
If I get an iPad, it will be for the entertainment factor - for anything other than the odd bit of reading - NO!
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