If people aren't going to read much on the iPad, then it is not going to expand the ebook market, it's really that simple.
Consumers could read books from their desktop, laptop, and hand held palm computers for ages, the fact that none of those devices were ever created for the purpose of reading means that people were buying them without any intention of reading a book. The iPad is the same situation, an all in one media device, that has its main appeal for video, music, and games. I doubt more than 5 percent of iPad owners are going to be doing serious reading over the life of the first version of the iPad. The iPad will not efficiently expand the ebook market because ebooks on an iPad have to compete with all the other forms of media.
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