Bitt, agreed, however, they also have their Kindle application, which I think can do very well on the iPad and iPhone. To further the process of selling onto other devices without Kindle software, they may consider changing the Kindle DRM.

I don't know how the formats are going to play out since it doesn't yet appear that there's a clear path to end segmentation, mostly due to DRM. Without the DRM concern it's not inconceivable for a reader application/device to support multiple formats and/or convert between formats. It's also going to be interesting to see how the publishers are going to feel about this segmentation while overall volumes are increasing.