It's all about choice.
E-readers gained market share when there was nothing remotely equivalent out there. The e-reader is now competing with the iPad and no self-respecting Apple afficionado is going to be seen with a kindle when they can show off their shiny new tablet.
With more devices on the horizon new buyers will now have to weigh up the value of a dedicated e-Reader against a multi-function colour slate.
For most consumers it will not be viable to have two such devices. The whole point of the slimline slate form factor is to make it light and easy to stick in your bag when travelling. Stick two of these puppies in your bag and it's now the size and weight of a small laptop, totally defeating the object.
For now the iPad's cost is keeping the dedicated devices very much in the game but if the Android equivalents really do fall in the same general price vicinity as the Kindle then I think the audience for the single function b/w e-reader will be tiny compared to that for a multi-purpose colour slate.
That's not to say "nobody" but tiny - I'm sure there'll be some diehards who value the dedicated nature of an e-reader and as Jason says, if there's going to be a survivor in that dedicated e-reader market the Kindle will have gained enough of a foothold in the market to be it.
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