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I don't find this surprising at all. If you can't beat them (or compete with them), try to make some money out of them! At the end of the day Amazon is in the game of selling books. They can see how this goes without actually putting any money into developing their own hardware, if it takes off, then throw some money at it.
Clever.
Oh, yeah, one type of books that would really benefit from colour and some multimedia is kids books - both early years and learning books (encyclopaedias and such).
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