And that's not even considering that the eReader solution is more likely to cost:
$300 for the reader
still 50 cents for each newspaper addition.
I always expected on-demand cable movies to cost less than movie store rentals, since they don't have to spend money on the media and don't maintain a retail store, but I'm still waiting. It turns out that the cost of the content still has to be covered, and if newspapers still provide a print edition to some people, then they probably won't save any publishing costs at all.
The only sell here is convenience. Make it wireless. Make it reliable.