Barnes & Noble just took the wraps of a full colour, $249 Android based Nook e-reader.
This looks like it might be a decent compromise for someone that can’t pick between a Kindle or iPad. (If such a person exists.)
The colour Nook isn’t e-ink based. That’s good if you want a zippy tablet, bad if you want to read on the beach.
So, you’re basically getting a severly limited tablet, and an e-reader that’s not as great for reading.