Marco Arment, responds to some of the criticism towards eBook reader:
At one point in the middle, she read a book on paper (because it wasn’t available on the Kindle) and absolutely hated it. Her commentary was priceless: she couldn’t easily look up word definitions, she couldn’t change the font size, it was awkward and lopsided to hold near the beginning and end, and it would lose her place if she fell asleep while reading.
Plain and simple, paper books is a 300 year old technology that is cheap as dirt to produce, but lacks any real innovation to the user in recent decades.
Maybe imitating a black and white piece of paper like the E-Ink devices do is not going to provide the killer feature for the masses. But with many companies approaching the market from different directions, something is going to stick and become the next iPod.