Not quite.
Although 2010 might shape up as the year when e-book reader become more than just a niche device. There are now several generations of Amazon’s Kindle device and it is now available not only in the US but in other parts of the world. Barnes & Noble, one of the US biggest bookstore chain and online store has also released their own version of an e-book reader, the Nook. This is significant since both Amazon and Barnes & Nobles have their own online bookstore. This might finally mean that publishing companies and book retailers are finally willing to embrace the technology. And it is not only Amazon and Barnes & Noble that have come up with e-book readers, electronic and computer manufacturers like Creative, Sony, Samsung, MSI, and LG have their own e-book readers, or have announced plans to introduce one. Sony has the PRS 300 E-Reader Pocket Edition, Creative has the Mediabook, and Samsung has the Papyrus.
E-book readers and by extension digital downloads is the next step for book publishing and deployment. With dwindling forest resources and the current global awareness and campaign to implement sustainable practices, digital publishing is the way to go. It is just silly printing so many books that end up in landfills when no one wants them anymore.
I think the technology is already there to go digital for most of today’s printed matter. I heard from a friend who owns a Kindle that the display is quite readable. Most e-book readers have the capacity to store hundreds of books and can be expanded by adding a memory card. The Nook even have dual display with the smaller display in color to be able to view book covers of books available at the online B&N store. Size and weight of e-book readers is also not an issue. It is not much different from a paperback. And current R&D promise new screen technology, with bendable screen becoming a reality in the next five years.
So what will make e-book readers become mainstream?
To my mind this will all depend on price, format support, and subscription models.
Price. The current price of e-book readers in the market is not ideal. With most in the range of $300 for a device that to the mind of the average consumer can only display text is just too pricey when you can buy a netbook for the same price and with more uses. E-book readers should be in the $150 to $200 range and not much more. One way to bring down prices is to not to come up with models that are computer wannabes. We want an e-book reader, not another crippled computing device. Manufacturers don’t need to add features that mimics the features of a computer, rather they only have to make it do best what it is suppose to do, make reading on an electronic display at the same level of comfort and enjoyment as reading from paper.
The price of digital downloads should also go down and not locked to just one device. It should not be at the same price point as a physical book since there is nothing to manufacture and it saves the publishing companies from costs like maintaining inventory, distribution, and the like.
Format Support. What will quickly turn off consumers from considering an e-book reader if it is locked to a proprietary format. Let us do away with limited support, and open it up to be able to display every available format out there.
Subscription Model. Consumers do not need another monthly bill. f there will be a monthly subscription it should follow something like what Netflix do, wherein a reasonable monthly subscription gets you 3 to items at a time.

Amen to all of your points. Price is an issue; $300+ pushes the reader into the realm of serious electronic gadget. But, we don’t want a computer: We already have a computer (or four), we want an electronic-format text reader. A generic format (like .pdf) is good. Nobody likes being locked into a specific provider (watch iPhones have a resurgance as soon as the ATT/Apple partnership ends *fingers crossed*). Netflix-style subscription would be good. Better yet, iTunes-style download over the internet. Plug in your reader to your computer and download a book. And we haven’t even begun to discuss the library model!
Yup. By the way, the Nook has the ability to checkout ebooks from public libraries; a step in the right direction.