I showed your post last night to a friend who develops ebooks (and has worked on the hardware side as well.)

He agrees with many of your points.

However, he thinks the Governor's announcement was intended as a warning shot to the textbook publishers, and we're more likely to go to Open Source textbooks and print on demand before trying to implement eBook readers.

Also recall that most American textbooks are dumbed down crap because of Texas.

He wants to make a deal with the publishers.