I don't think that Nook Color will offer much competition to Kindle. Even if we leave features and specs aside (see
Kindle vs. Nook Color for my take on the subject), consider this:
Kindle and NC are both ereaders targeted at people who embrace technology.
Kindle is mostly sold on Amazon.com. Who comes to Amazon.com? People who embrace technology and hence shop online.
B&N is mostly sold in brick and mortar book stores (bn.com is a mere side-show for their offline business). What kind of customers visit B&N stores? The kind that usually buys paper books in an offline store. Do you think technological gadget like Nook will appeal to them?..
Tell me, I'm wrong.