Amazon’s decision to reduce the price of the Kindle to $189 could just be market positioning prior to the launch of the new model in August. But it could be a symptom of the general downward price pressure on e-ink devices following the introduction of the iPad. We are rapidly reaching the point where one-trick pony devices such as the Kindle, the Nook and even the Sony Reader, will be down to $100. In fact, I envisage a time when e-ink readers will be given away with the purchase of a given number of books. We are truly witnessing a revolution in publishing.
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I couldn’t agree more with your main point, i.e that simple eReaders need to come down to a sensible price, which as you suggest would be at the 100 USD level in order to remain a sensible alternative to the iPads and others out there.
Equally, I am also in agreement with you when you suggest that they will also be given away by “Book of the Month” clubs and others, before long, much as mobile phones are effectively given away when you take out a two year subscription to them. And none the worse for that either.
As has been suggested in other places, it is quite possible that the iPad and similar will assume the market position of devices such as the Smart phone, and the humble dedicated eReader will assume the position of the more simple mobile phones (which, please note, sell in enormous numbers all over the world still)