Did you not see this?
http://techcrunch.com/2011/09/02/amazon-kindle-tablet/
It's first hand information from a source that has seen it and used it.
(No need to apologize for the snide comment you made to me.)
In fact, I hadn't seen it, but after reading it I'd say that while it might be accurate it is hardly a definitive statement about the features of the device, nor even whether the Kindle 4 and the Amazon Tablet are the same device.
Full of "I believe..", "From what I saw...," "Not in production yet...," "My understanding is..", "I only played with it for an hour...", etc.
As with the many questions about the article that began this thread, a critical reading of this breathless bit of "insider" information suggests that there may well be significant differences between what is reported here and what ends up being sold to the public.
Not saying it's incorrect. Just noting that there are often big differences even between a device shown at a consumer electronics show and what is actually sold to consumers, much less the impressions of a writer who looked at a "design verification testing unit" "for an hour."
As far as e-ink is concerned, I'm not surprised that it poses a large development challenge and Amazon may well have decided to forego it in the interest of having the device available for the 2011 holiday season. I'm not convinced, though, that it's as big a deal for most consumers as it is for tech writers.
Clearly, e-ink displays have two big advantages over backlit displays. The battery life is phenomenal and reading in sunlight is far easier. The "easy on the eyes" advantage, though, is debatable and highly individual, I think.
Ten hours of battery life seems to be the hurdle that most consumers want to see. And the advantage of reading outside is balanced by the weakness of reading in bed without external lighting. While the absence of an e-ink display will turn off some dedicated e-reader readers, I suspect that it won't be a deal breaker, especially at a price half that of an iPad from a well respected brand like Amazon.
And all of that, of course, assumes the writer is unfailingly accurate in his report. Like the story you posted to begin the thread, that's hardly a safe assumption.