How not to market your own product.
1) Buy a well respected ebook reader company.
2) Ensure that development has all but stopped on that ebook reader (lets face it, mobipocket hasn't really advanced since Amazon took it over).
3) Develop your own hardware based reader.
4) Do not advertise it beyond a few technical publications.
5) Threaten legal action against anyone that writes software to enable people to use Mobipocket books (sold by you) on a device sold by you.
Kindle may or may not be a good piece of hardware (having played with one, I think it's OK, but not enough to want to buy one), but it will fail because Amazon have been totally ineffective at marketing it..
They should open it up so that Mobipocket books can be read on it. After all, Mobipocket has a huge library, and the Kindle has a far superior screen to most mobiles and PDAs. Both will help sell the product.