I believe that more good news will come from the educational sector in the near future. The education market is most likely to be the arena in which ebooks first gain a strong foothold. When you think about it, the ebook is ideally suited for this kind of environment - especially in these early stages. For instance, within the confines of a college campus, you can create a closed system in which the reading device, the college, and the ebook provider can work in concert. Textbooks are converted by the provider.
Students log into the provider's servers and purchase the textbooks.
Professors can also log in and upload course materials and notes which the students can download into their devices. The cost of the device, which would be prohibitively expensive in the retail market, is less of a factor since the school can bundle the cost into the student's tuition or school fees or simply rent the device to the student while they're enrolled. The benefits for the student are enormous. With the right software, they'll be able to carry all their books, notes, assignments, and contacts on one ebook device. When I'm asked this question I like to tell people we're in a holding pattern.