I predict you'll see a convergence here similar to Smartphones and GPS. Only it will be netbooks and ebook readers. Look up the LCD design company Pixel Qi.
What Apple and Steve Jobs get that eInk, Sony Reader, and Amazon/Kindle didn't, is that interactivity is key! When you enable fast, responsive interactive search and navigation, you increase the value of information by an order of magnitude. Apple's new device is going to be multi-touch, and it will own!
Apple will introduce the device at a higher price point than netbooks and the Kindle. This will enable them to partner with Amazon, and it will also fit Apple's usual strategy of high margins for premium design, integration, and usability.
Apple will introduce the device at a higher price point than netbooks and the Kindle. This will enable them to partner with Amazon, and it will also fit Apple's usual strategy of high margins for premium design, integration, and usability.