The Literati, shown here, is an e-reader with a full color display. MechSource, the creators of this e-reader, are hoping to get a jump on the color e-reader market with this device. It does not have a touchscreen, it does not allow you to browse the web, and it does not run any applications. It’s simply a $159 color e-reader. It uses the Kobo platform, and will come bundled with 25 public domain works for your reading pleasure.
There’s some hands-on feedback at the NY Times, and it’s worth a read. I don’t think the Literati is any real threat to the established e-readers on the market, but it might be sufficiently novel right now to attract a few consumers.