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With the Barnes & Noble Nook eBook Reader the Amazon Kindle finally has a worthy challenger. If you haven’t seen it, there’s some b-roll footage that shows more detail about the Nook than the general marketing materials do. The device looks extremely well done. With the possible exception of Jeff Bezos, no one loves the Kindle 2 more than I do and yet I’m extremely interested in the Nook. These are my initial thoughts.

The Meh

I don’t see how Wi-Fi will be very useful in a device that already has an always-on 3G wireless connection and primarily downloads fairly small chunks of text. (Yeah, yeah, I know AT&T sucks. But, even its network can handle downloading eBooks. Besides newer Kindles are on AT&T too.) If the Nook does web browsing or Wikipedia viewing like the Kindle does, B&N hasn’t mentioned it. So, Wi-Fi in the Nook is nice but hardly a game-changer at this stage.

I’m not sure if this eBook lending thing will take off on the Nook or not. A part of me feels like Barnes and Noble is saying “Welcome to the Social.” But, perhaps eLending will be a way to encourage friends to get Nooks. It could also spark more book purchases since many of us take more than 14 days to finish a book. Time will tell.

Who needs expandable storage in a device that can hold 1,500 books at a time and supports free downloading of previously-purchased books? This is a total non-issue for 95 percent of consumers. My guess is that Amazon dropped expandable storage after the first Kindle because so few people were using it. I’m unclear why B&N feels the need for this and it probably makes the device thicker than needed.

Apple has proven that replaceable batteries in portable devices don’t matter for most consumers. iPods, iPhones, and even the new entry-level MacBook don’t have user-replaceable batteries, The Kindle 2 and the Kindle DX also don’t. (Amazon dropped replaceable batteries after the first Kindle.) Again, I’m unclear why B&N feels the need for this and again it probably makes the device thicker than needed. Perhaps the color touch screen and Wi-Fi are factors?

The Wow

The CoverFlow-esque color touch screen interface on the Nook is very slick. It’s certainly a differentiator in a device that sells for the same cost as a Kindle 2. With the Nook, the eBook reader interface bar has been raised. Though, to be fair, Amazon had set that bar about an inch off the ground. I’ll be fascinated to see how Amazon responds here. The Kindle 2 will be almost 10 months old by the time the Nook ships. I don’t think Jeff Bezos has spent all that time ordering shoes from Zappos. I would expect a Kindle 3 in Q1 of 2010 and I hope it has significant interface enhancements.

Amazon is currently listing a little over 365,000 eBooks in its catalog. B&N says it has more than 1 million eBooks, though 500,000 of those are low-demand free books that are out of copyright. That still means that B&N is claiming a lead of around 135,000 copyrighted titles. If that’s accurate, it’s very impressive. I’m not sure how B&N leapfrogged Amazon here, but kudos.

Personalized screen savers, direct loading/viewing of PDFs, and support for the EPUB and eReader formats are all great features to have that the Kindle 2 lacks. (No Word support on the Nook though, and it’s unclear if documents can be emailed to the Nook.)

In my mind, the killer feature of the Nook has nothing to do with the device at all. It has to do with location, location, location. You’ll be able to try a Nook in a local B&N store, buy one in a store, get support for one in a store, and return one in a store. That’s huge when people are trying to decide whether to spend $259 for something. I keep saying that Amazon needs to get the Kindle into Best Buy, Wal-Mart, and Target. Maybe the Nook will make that happen.

Overall

Overall the Nook looks like a great device and it will ship in time for the holidays. B&N is a little late to eBook reader the party, but it has arrived very well dressed. Competition for the Kindle is good for all of us eConsumers and I can’t wait to try the Nook soon.

Lots of people are questioning whether the burgeoning eBook reader market is viable. They wonder whether the iPhone, Android phones, the rumored Apple tablet, and other multi-function “Swiss Army” devices will make dedicated eBook readers irrelevant. The answer is: yes, but not for awhile.

A Kindle 2 from Amazon or a Barnes & Noble Nook can be had for $259 and prices are falling pretty fast. They come with free cellular networking. They can get 10-14 days worth of non-network use on a single charge. They aren’t backlit or reflective, making them easy on the eyes. Their screens are larger than phone screens and thus easier to read on. That’s a pretty impressive feature list for someone who’s an avid reader.

To quote the mantra, the best camera is the one you have with you. Well, the best eBook reader is the one you have with you too. (I enjoy Kindle for iPhone on the go as much as anyone.) But, many people can easily have dedicated eBook readers with them at home, school, work, vacation, etc. And, the reasons listed above make a dedicated device better for some people at this point in time than an iPhone or the rumored tablet.

Those devices already have color screens for future eComics and glossy eMagazines going for them (along with their multi-functionality). Over time, they will likely improve regarding cost, battery life, and reading comfort. But, that may take years and dedicated eBook readers will be useful to many consumers until then.

In the meantime, eBook reader manufacturers won’t be standing still. Their dedicated devices will get cheaper and may gain 256 shades of gray or even some level of color. That could extend the usefulness of eBook readers further. Time will tell.