At this point in time, ENN can say with a straight face that “analysts believe it could be successful as a niche product.” One reason I push it as an e-reader is that I think this “niche” is well on its way to becoming a full-fledged category.

Unlike others who think e-books will take off when specialized e-readers arrive, I think that the spur will be e-reading capability on tablets that people buy for other purposes.

I conclude this from guessing that more e-book readers (the human kind) on Palm devices bought their PDA for other uses and took to e-reading than those who bought Palms in order to read e-books.

So if internet tablets grow as a category, the prices for these e-reader-also devices will fall as competition increases.