The failure is not the technology. The capacity to download, store, and recall hundreds if not thousands of books is impressive. The ability to replicate the look of font on paper is incredible. Each generation of e-book devices is rapidly outpacing the previous incarnations with additional features such as internet browser, PDF support, wireless updates, subscription support, and multiple e-book file types. The technology in and of itself is grand and a true marvel of the modern times.
The failure is how the e-book reader companies do not consider libraries as a viable customer.