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I hope that soon someone will make free wireless internet. Hot spots are nice but they don't cut it. The dependence on networks is relative. The wireless companies will feel the torn of VoIP, and I hope with in the next decade.

If you want to become device centric you will have to cut loose of the distribution of the books or what ever else people read. Make it as adaptable to current systems as possible. I think this is the only way to succeed with this kind of endeavor.
I think when you buy kindle from amazon you are paying for the network, manpower to sustain the system and royalties, more then for the device. Hence 400 buck a pop. Amazon is marketing it purely on power of their brand. I would really love to see the real coast of kindle that amazon pays to the manufacturing.

Hot darn I want something that I can bend, sit on and let drop in mud and still be able to read from it. And I think that is the feeling of most consumers. Although if you drop newspapers in mud it is hardly readable hence some improvements by the new technology.
I'm assuming plastic would be used for this device but what if all the natural resources used to make plastic are gone any ideas there? Just to think little ahead.
Another of my 2 cents. I wonder if I can get to an dollar here

I would love a system like iTunes for books – which is basically the kindle app for iPhone right now and the Kindle itself.

For now I will continue to use an iPhone but I am thinking about an electronic reader at some point.