I have been wanting this for a while and I still can't figure out why no one has released one. In my mind, my cell phone (or tablet) should be an all in one device - which to a large degree is becoming the case. I hated having a stand alone MP3 player, GPS receiver and camera. Now that e-readers (and wannabe e-readers - kindle fire, ipad, etc.) are becoming mainstream, I don't want my next phone (first tablet) to be without a low power screen. I am a bit disappointed in the average consumer though - it seems like they have a hard time understanding the advantages of e-ink screens or they are ok with reading on an ipad/kindle fire as it can do more than a basic e-reader. If executed well, it could be a major product enhancement and give a mobile device make an edge for a while, esp. considering it would be cheap to add - the screen and the minimal amount of hardware to interface that with the rest of the phone.
Can one or the other be (more or less) completely transparent? Is it possible to have one screen layered over the other such that the LCD only becomes active when the user is directly interacting with the device?