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I think this thing has some significant obstacles to overcome. First, people are used to books. Second, $399 is a lot of money to invest in something you aren't familiar with.
That being said, with the books being only $10 for best sellers, it may come out almost even in the long run for people who read a lot.
I've heard the Sony ebook reader is very easy on the eyes, so if the technology is there, it won't feel like looking at a screen.
I think it will be a few more years before these things become the norm.
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