I don't see it. While I'm having a fine enough time with the Kindle myself, I think its lack of a backlight and color, rudimentary display of pictures, and plethora of steps and button-pushing will cause most anyone under twenty-five to dismiss it as being for The Olds (and the really Olds, like me, who love the way you can create a large-type edition at the push of two buttons). But things don't look good for the long-term prospects of the device.
But take a look at this planned successor to the OLPC XO-1, the one-laptop-per-child machine. That's promising--and on the cheap, too. And has anyone read Neal Stephenson's The Diamond Age? Its heroine has the the ebook machine of my dreams.