Recently, I brought a Dasung paperlike HD to use as a monitor. (crazy expensive, prob should've spend money elsewhere...) I thought some things were impossible with eink, but it proved me wrong. (video in a reasonable fps) It has a few different ways of display. For example: Floyd–Steinberg dithering: essentially only black and white with dithering, and the speed pretty good. A16: uses 16 shades of grey, but the spee…
It's because the technology is a physical one --- tiny bits of reflective/absorbant particles have to physically move up and down to change the state of the pixel. It's almost like a miniaturised flip-dot display:
https://en.wikipedia.org/wiki/Flip-disc_display
The response speed increases with temperature and voltage, but temperature is not really controllable and high-voltage high-frequency drivers are not easy to make in the sizes required. Here's an article about someone making his own segmented eink display:
http://we.easyelectronics.ru/HomeTech/izgotovlenie-segmentno...
In the comments you can see a picture illustrating the difference the driving voltage makes.
(Also previously discussed at https://news.ycombinator.com/item?id=14124086 )
Related video of someone playing around with the eink material itself, showing how it responds to voltage changes and that it's possible to "draw" on one: https://www.youtube.com/watch?v=jXxSOR1PHpE