That's really an individual level question.
For me, the iPad (or similar tablet) certainly could. I like my Kindle, but I don't really read enough to need the e-ink, super long battery life etc. and would be fine reading on the iPad.
Reading for 30-60 minutes here and there (usually just before sleeping 4 or 5 nights a week) on my Kindle, I don't really have to worry about the eyestrain, battery life etc.
I read that long on my girlfriend's iPad a couple of times the past two days and didn't have any eye strain issues etc.
But on the other hand, for avid readers who are reading a ton every day, something like the iPad probably can't replace their e-reader.
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