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I think the fragile nature of such a device would be the telling point. As I am pretty much home bound and don't read in the light, I find my tablet is perfect as an ereader (pretty much due to the price point as well as the ability to read any format I please rather than being tied to a particular format or store).
I would find myself frustrated to no end not being able to access the books I want to read by going to the external sd card and getting the entire series listed in the directory list. Looking at how friends search on their kindles for the next book in a series makes me scratch my head.
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