Over the years, when asked by publishers whether I'd consider adopting an e-book, I've always said no because (1) the students couldn't annotate it and (2) they wouldn't be able to bring it to class with them. A device like this might change things, though, since students wouldn't be able to say that they'd forgotten their book that day, especially if their books for all their classes were on a Kindle.
On the other hand, there are still some drawbacks.
(1) It's still more work to open a window and type a comment than to scribble one in the margins. And what about the random markings (circling the names of places and characters, for example, or lines and check marks by an important passage) that help readers to remember and find things in a text?
(2) Would students want a book that they couldn't sell back to the bookstore? Only information stored in physical media (CD, printed books) can be transferred to another person in any legal and meaningful way.
(3) However fast the electronic pages refresh themselves, an e-book can't reproduce the experience of skipping forward and back in a text. Sometimes the feeling of a book is what you want. For example, flipping through a big chunk o' pages and scanning the text for a word, or even the pattern of the paragraphs, can often get you where you want to be, even though printed books don't have a search feature. (I know, I know: it's called an index, but novels don't have them.)
(4) What about the charms of seeing your own childish handwriting (with thoughts to match) on a book that you owned back in the day?
(5) I'm willing to bet that one of these devices wouldn't last a student for his or her whole college career, although a laptop might.
Does anyone have one of these? Does anyone WANT one of these? I confess that I kind of want one, and if it were $99 instead of $399, I might be tempted.