I saw a Kindle during my recent two-week cruise. It was impressive, and I wanted one.
You have probably read that newspapers are folding left and right. What are their readers going to do? They are going to be reading online, more and more.
"One way to win is to go where there is no competition." That is where Amazon went with the size of the Kindle (and black and white), I think. It found a profitable niche.
And then there is the Internet Tablet niche, being vacated by Nokia. They had a spot where there was no competition and are abandoning it, for now anyway.