Even with such innovation, it would never match the iPhone touchscreen and I don't think Apple is willing to compromise like that. If Apple do think in this direction, I think it's more practical for them to have 2 equal size screens, an iPhone-like touchscreen for videos, games, and dynamic web browsing and an e-ink screen for reading books, magazine, and static web contents. The touchscreen can be used to control and navigate the e-ink screen (think of your laptop monitor being the eink screen and the keyboard being the touchscreen). It can be folded in like a laptop to protect the 2 screens or fold out (with both screens on the outside) when in used.

Now that is one way Apple will convince me to drop updwards of $600 despite owning a Macbook, iPhone, and a Kindle.