Can the e-reader save the “printed” word?

Plastic Logic yesterday announced their new product, known currently as the reader.  Similar to Amazon’s Kindle and Sony’s eReader, the unnamed reader uses E Ink technology, which provides a digital display with a similar look and feel as a book.  From Plastic Logic’s Web site:

Differentiated by a stunning form factor (the size of 8.5 x 11-inch paper), the Plastic Logic reader features a big readable display. Yet it’s thinner than a pad of paper, lighter than many business periodicals, and offers a high-quality reading experience – better than alternatives of paper or other electronic readers on the market today.

The reader will be released in spring of 2009.  The question is what – if any impact will this have on the newspaper industry?

A big issue will be the price.  The reader is aimed at the business class, and can read PowerPoint, Word, Excel, and PDF documents.  Thus, the initial price will probably be similar to the Kindle (around $300).  However, what if newspapers gave one of these away with a one or two subscription?  Each morning, you could press a button and have the paper delivered instantly.  Also, this would cut costs for the newspaper, as printing and delivery are a significant percent of the production cost.

Could this help rejuvenate falling subscription rates for newspapers?
I believe it’s only a matter of time before we find out.  What are your thoughts?  Add them in the comments.

Plastic Logic’s press release

NY Times article on the reader