At $8.95 apiece, $1100 can buy you 122 mass-market paperbacks. I certainly hope that someone can bring that retail price down a fair chunk, or this tech is not going far.
Many new technologies are prohibitively expensive, but we have to start somewhere.
As much as I think Amazon needs some competition, I'd love to see them take a swing at this concept with a Kindle - "Technical Edition". While I'd love to see some openness and extensibility via an SDK, I think if you get the price point right, it doesn't much matter. A sub $300 A4 or Letter sized device with the ability to read major document formats, annotate notes and maybe offer a digital note taking solution would be a dream.
But, at $1,100 this is nothing but a interesting but wholly irrelevant spectacle from a company that is rapidly trending in the same direction.