And in 2010 it has only gotten worse. Pocketbook released the Wifi equipped PB-302 ereader in February, It wasn't a great ereader, but it still did something no Sony Reader could do. And then the Kobo Wifi got Sony kicked out of Wal-mart (5th place now).
You might not think connectivity is important, but apparently everyone else disagrees. Heck, Pandigital managed to field a Wifi equipped ereader, and they just entered the industry in _May_. Think about that for a second. Sony is being out innovated by a digital picture frame company.
Let's take it one step further. Who is working on a Mirasol ereader? Pocketbook. Who just showed off a color E-ink ereader? Hanvon. They're coming up with new stuff while Sony incrementally improved last year's stuff. Now do you see why I think the Sony Reader is doomed?
Do you want to know an even bigger FacePalm moment? The recent Sony Readers could have been released with the ability to buy ebooks from B&N. (Trust me, I am quite certain that I have my facts correct.) Sony deliberately crippled the new gadgets. WTH, Sony?