This can either go two ways methinks.
1. It'll be very similar to a kindle, but color, touch screen, and have the usual wifi, etc.
2. It'll be more like an iPhone, requiring a service contract of some sort, and will be at least $999 with that contract.
If they already want to have hardcover books at $12-15, you can bet they are going to put even more of a premium on the device itself.