c) e-Readers/Tablets don't make the barrier to entry much higher. (You can publish stuff on the Kindle for free, for instance: https://dtp.amazon.com/mn/signin). Hence it's hard to see how he can compete in the tablet/e-Reader space any better than he could compete online.

-- e-readers and Tablets may not make the barrier to entry tougher. But it might get them more subscriptions if apple implements subscription through itunes.