"Everyone was attached to the physical format of the CDs, just like we are to books" 

Humm, I don't agree with that "just like" part. And I'm not sure sure if there's actually any kind of attachment to the CD media, Vinyl of course, but CD, really don't think so.

"I do value the physical experience of reading page by page"

Bingo, the CD didn' play a part in the music experience of the user, he just inserted it and pressed play, he surely didn't watch it spin while listening to the music(some people do, but not everyone), in books, the media plays a relevant role in the experience, symbolically, and physically.

"The crucial factor will be price."

The crucial factor will be the feel, the device itself, imo. No matter how cheap it is, I won't use anything similar to that prototype.

My ideal ebook reader would have a touchscreen covering 90% of its surface, in the lack of a proper tactile feedback technology I'd want a surface that felt and looked like paper, a natural interface is a must, to flip a page I slide my finger on one of the corners(gimme audio &amp; visual feedback too), size will matter a lot, maybe 8" screen, not sure, as for power, I've seen somewhere a highly efficient solar panel, like 2 square cm of it would have the same output as a classic 2 square meter panel, use that please on the remaining 10% surface and on the entire back of the device, so that when I flip it over it turns itself off and starts charging. The books themselves, guess what, Google's our friend, and my device'll connect to their 700Mhz cell network(lol, it'll run Data OS too), WiMax, you name it, as long as it isn't an hotSPOT, and download them directly from some store, authentication is done by fingerprint(they're really small y'know, throw one at those 10%) or read my NanoID(a unique pattern of nano radios in my bloodstream XD ), guess that's all but you get the idea.

"And they could just go to the nearest Starbucks and download a new romance, just like you could download a music."

As I said, I don't want to be lured to a Starbucks by a book-bait, unless it's free. But yeah, that's a nice idea.

Oh, I hope the marketing people don't forget to advertise that ebook reader as something you can use to save the earth.(tho it'd be 'true')

Oh, btw, data input's made by handwriting anywhere on the screen.

Now, back to 2k7, here's a nice commercial ebook reader, the <a href="http://www.learningcenter.sony.us/assets/itpd/reader/">Sony Reader</a>

They even included a cover, nice touch, I suggest having the cover of the last open book to be displayed on it, so when you close the reader you get the same feeling of when you place the book on a table, if you know what I mean, "it's there, and it's more than digital".

Forgot one thing, we want color in our graphic novels.