Much to expensive -- and it's not DRM (digital rights management)-free so a lot of the free and/or currently bought e-books you may already own may not work with the device.
Either the device should cost a lot and the content should be free or the device should be free and the content should cost (and cost less -- all books should be $4-

.
The device itself is also rather awkard looking.
But I do hope it succeeds so that 4-5 years from now, e-readers will be in the same stage of development that MP3 players are now. I know everybody likes the iPhone, but smartphones are too small to really read more than a few lines of text on. Something that is the size of a book.
On a related note, this $400 laptop looks like the perfect device for writers who just want to write, surf the Web and listen to music (assuming that you can deal with the cramped keyboard):
asus eee pc
A Motley Vision: Mormon Arts and Culture