Apple to launch a new tablet / book-reader with an OLED display?

It seems like the rumors about Apple and OLEDs will never die. It seems very likely that Apple will soon launch a new tablet computer, which will also double as a book-reader (which will compete with Amazon's new Kindle DX).

Smarthouse reports that the new tablet will have a 10.6" display, made by LG Display. It will either be an OLED, or a LED-based LCD. Smathouse seems to be running these rumors for a long time now, claiming Apple will have an OLED iPod, or monitor, or netbook... 

There will be an interesting battle here between Amazon and the E Ink based Kindles, vs Apple with their color LCDs or OLED. E Ink displays are much more power efficient, are readable in the sun, and are easy on the eye. But they are slow (cannot display video for example) and of course do not have color. So will people want a dedicated reading device, or will they prefer a general computer that can also be used for reading?