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My reasoning is quite simple. Everything a Nook or a Kindle can do an Apple iPad can do better.
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No.
The iPad has a 135 ppi* screen - my Sony PRS-505 has a 166 ppi screen - and my Motorola Droid has a 266 ppi screen. Kindles and Nooks use essentially the same screen as the 505.
*pixels per inch
If you want really crisp text, you need a high ppi count; this is one of the advantages paper still has over screens - more effective pixels (dots) per inch. By lowering the ppi count, Apple has made it impossible for the iPad to display truly crisp text, and we already have people complaining about E-Ink at a higher ppi count than the iPad.
Now I want an iPad or preferably an Android-based iPad clone with a 10" screen - but not to replace my Sony. I have other uses for it.
Dedicated reading devices are a niche product because dedicated readers are a niche market. They won't go away, they may not be as common as 'Pads but they will stay around, because they do their primary job - letting you read fiction - better than the 'Pads.