On the pricing/positioning issue: we're talking 3 to 6 months down the road.
There are things afoot that may well render a US$350 10in eReader a Premium-priced product rather than a cheap one. Kindle DX is *not* going to be $489 forever; it might easily be $399 or lower by August, when K3 comes out.
Two words: Android Tablets.
Two more words: Pandigital Novel. (Starting June 6, allegedly.)
Now, add-in three more: Kindle For Android.
No, US$350 is a fair target; you have to aim at the market of tomorrow, not the market of today.
That is why my concern is making sure the 901 can leverage the added value in the PB360 software ecosystem. As presented in the video, I would seriously consider buying one for my mother.
However, *if* it were built off the same software platform as the PB360 I could see myself buying 2 or 3 (me and my sister; XMAS!) and recommending it broadly. (Why settle for 6" when you can get triple the screen area?) A lot of what makes the 360 so much fun to own and use would only be magnified on a 10in screen. (For starters PDFs might actually be useful on it.) Plus, unless I miss my guess, the 901 is looking to use the next gen screen with the higher contrast, right? There was mention of a plastic substrate, too.
Those are not low-end features.
Oh, and the color buttons?
I think my mother might actually find them a plus; easier to remember what does what.
A lot of new audio-video gear is starting to use color as a way to improve control system accessibility even on high-end gear. (My Sharp TV remote has Red-Green-Blue-yellow buttons, as does my OPPO BD player. Ditto with my XBOX.)
The PB guys may actually be ahead of the curve there.
I see nothing bad in that video and plenty of good.
Just wish we were talking August/September for the US and not later in the year.