1. couldn't you crack it?
2. if it's otherwise better than the alternative, and the memory card is a standard SD or micro-SD that you can pop in and out from the outside without removing the battery or turning the device off, then I wouldn't mind, SD's are cheap. (some shop here had 4GB micro SDs for EUR 2.50 whoo).
3. how big is the average ebook anyway? 5 MB means you can still store 200 of them in a GB.
but looking at the article, it actually does not seem better than the alternative Kindle in any other way, or does it?
Average eBook is around 400kb. Yeah, that's a K. My current Kindle has a 3GB drive, and I regularly haul around a thousand or so e-books on it, mostly because I'm too lazy to run through it and cull off the ones I don't want.
I suppose it could be cracked, but would beat the heck out of me how to do it, I'm a technoidiot.
For me, it's not a matter of storage space, it's the idea that they're telling me what I'm allowed to store on MY gadget. With a Kindle, it's actually quite possible to walk into Best Buy, pick one up, and never even have an account with Amazon.