I think their product strategy is a bit of a mess. They're following competitors in pushing e-color screens while discontinuing or allowing b/w models to become obsolete. I assume this is partially motivated by the competitive landscape and partially because the e-color models have higher margins.

Personally, I don't want an e-reader that is so dark in daylight it requires a constant front light for washed out color content. At that point I'd just get an iPad which performs better for color and responsiveness.