Right now, the most important part of any e-book reader is the screen. Some people hate reading on backlit screens, other people can't stand the refresh flash that you get with e-ink. Lots of folks have pinned their hopes on the Pixel Qi screen, in which you can turn the screen's back light off, enabling you to use the screen in direct sunlight and with almost no power usage. And now it looks like there's a new competitor in the dual-use screen field, the Nemopict:
It's important to note that this test doesn't show moving images, which is a deal breaker for many tablet users. But I think that as this kind of technology improves, we'll see e-ink eventually go extinct. People want to use their devices for more than one purpose (sorry, Kindle), but they want their devices to do every task really well (sorry, backlit iPad screen). These kinds of screens will make that possible.