Wow, that looks awful. I'm sure it's terrible for battery life, too, so why not just use a screen that's designed to be more than static paper? I guess this is kind of clever... what will be really amazing is when LCD/eInk hybrid screens become a reality.
You may want to take a look at PixelQi Displays, they already built a hybrid. It is not perfect by all means, but it gets really close. There is a tablet based on it as well, the NotionInk Adam [1].
