Reasons for failure
I'm not sure how much the failure of the original company was down to a lack of interest in large screens, and how much was down to spending far too long polishing the damn things and not getting them out the door. Every time they surfaced, they seemed to be adding yet another high end feature to the device (to justify the cost of the tech?), rather than just getting an e-reader in the shops.
It was fairly clear to anyone paying attention to the business that e-readers would not be high end devices, and that there would be a 'race to the bottom' that was only being delayed by the strangle-hold that the handful of e-ink manufacturers had (have) on supply. On the surface Plastic Logic's technology would have been a good fit - surely it's cheaper if you can print the majority of your device?
There is probably still some room in the market for a larger screen, keeping pretty much the same physical format as existing readers but reducing the bezel. Regardless, a product on the shelf sells much better than one only demonstrated to journalists. Their failure was in not delivering.