Personally, having used the iPad for the past six months, I LOVE how the Nook Color and the Kindle feel in the hand. Very light, feels like holding a real book. The iPad feels like a brick by comparison....its NOT a brick, the iPad is very svelte but by comparison you really understand that the iPad is a tablet and the Nook/Kindle is an eReader and designed around the ergonomics of an optimized reading experience. Even the screen on the Nook Color looks MUCH sharper for text display than does the iPad. Mainly due to smaller screen and higher PPI. I know Steve Jobs has said he'd never make a smaller iPad and thats a shame really because I for one would LOVE to have an iPad this size. Maybe it'll be called the iPaperback and he can then save face that way
B&N is the largest US retailer of books...about $5B annualized revenues, and if you follow their stock, most of that revenue actually is against very little inventory assets as their business model revolves around the concept of consignment. This is also why the Nook/Nook Color is the way it is. Back in the 80's B&N got out of the traditional buy inventory, mark it up and sell it for more. Instead, they started renting shelf space in their stores. This let them invest more money in hard assets like real estate, fixtures and furnishings and get out of the high inventory holding costs affiliated with traditional retailing and merchandising operations. So in that manner, the Nook/NC are really just virtual shelves for them to stock, just like their brick and mortar stores.
Of course, Amazon dealt them (and their smaller rivals like Borders) a serious blow a decade ago and they've not ever really recovered. I think the Nook/NC is a great move for the company but it may prove to be too little/too late.
Nonetheless, they make a fine $250 Android tablet. Just rooted mine over lunch to see how it works that way. Process was brain-dead simple and I'm now installing a few marketplace apps on it to see how things work. I'll let you know how battery life fares.
PS: By the way, the NC runs Android 2.1...rooted its still the same. While this is definitely an older version of the Android OS, welcome to the world of Android! If you walk into any AT&T, Verizon or Tmobile store you'll find that most of the Samsung Galaxy series of Android phones -JUST- got upgraded to 2.1. Very few Android phones are running 2.2 (Froyo) and I've yet to see any outside the recent Google Nexus 2 that are running Gingerbread (2.3). The Android world is a freakin' mess when it comes to standardization on a current OS version it seems.