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It will be interesting to see if Apple does indeed jump into the eBook area one of these days, as many are predicting.
And if they do, there will already be a full color display, not merely a four shades of gray screen. The Kindle is simply not made for web use, period. And even it's eBook usage is limited to what Amazon decides to offer. And it has an extremely limited memory capacity (the limited color 'gamut' helps avoid most problems there) but also means it will probably
have to have
constant Internet access since it won't be able to store much of the 'book' in memory. Not a problem in most urban settings, not so good when flying/driving out of town...
I believe most of what you are paying for
is the Internet access, anyway. The device, itself, is not very unique or innovative. It's basically a simple, limited-gray-scale-monitor receiver for text (not PDF, which would probably add licensing fees). Of course, as profits come in, it could be upgraded to full color and even have a real web browser included. But that would both add battery drain and increase bandwidth usage not to mention added memory needs.
The best 'innovation' I've heard about the Kindle is its reflective background screen which makes it easier to read in daylight. Of course, it will be impossible to read in a dark room/car/starlit backyard...
All in all, the Kindle and
any iPod are two distinctly different products. I have no desire/need to own either. An HD radio, however...