Nook eBook Reader with Full Color Touch Screen on the Way? Tablet in Disguise?

My belief is that ebook reader battle #1 is over and the Kindle and iPad are the winners. But, this belief doesn’t preclude a battle #2. And if this CNET rumor is correct, it might get interesting.

Source: New Nook is Android-based, full-color

The new Nook, CNET claims, doesn’t stop with a thin color LCD strip at the bottom. No, this new Nook is said to have a 7-inch touch screen that provides color on the full screen. Since, the Nook is based on Android, one could argue this is the first tier-2 Android tablet available through a major retailer. There’s no indication that this color Nook can run Android apps. But, with apps emerging for the Kindle, it isn’t a stretch to imagine Android apps on the Nook. The rumored color Nook has a rumored price of $250. That may seem a bit expensive to some given the WiFi-only Kindle’s $140 price. Even a color display may not elicit the response to fork over another $110 for the Nook. On the other hand, if this color Nook can run Android apps, it would be perceived as an inexpensive tablet instead of an expensive ebook reader.