E-Reader prices need to come way down in order to not die on the vine. I'm not saying they are currently overpriced, but even at $80 for a new Nook or Kindle, that's not cheap (in this economy especially). Especially when you can swing a Nook tablet, Kindle tablet, or an Android tablet for $130+ that does 10x more than an e-reader when you start comparing features per dollar.
I love my Nook, and had no problem spending $120 on the Simple Touch, but these need to be sub $50 from here on out.
The books on the other hand are still extremely overpriced.