"Even so, E Ink marketing chief Lawrence Schwartz said that the company doesn't believed Triton is an e-book reader component so much as a technology that will enable e-newspapers."
Presumably the increased complexity means a much lower refresh rate.
Apple are doing their very best to kill E Ink. Look at the "interactive ebooks" you can get from the Open University on iTunes U now. They're basically using webkit as an ebook renderer and slowly making ebooks more and more like locally installed webpages.
As an OU student, I'm all for reducing the reliance on multiple media sources, but by working video into a "book", they're breaking its portability. Audio, yes -- that's great, video no.
So the enewspaper angle seems to be a tacit admission by E Ink that this product falls between two stools: it is not for the paperback junkies who currently devour Amazon's Kindle catalogue, and it's not for people looking for a truly rich experience. Personally, I think the best market for colour e-paper is for posters and information signs, which is a form factor significantly over 7"....