Whoa, this is how we win the future. I'm all for the KNO, this cool little electronic-notebook-computer-e-reader-laptop-educational tool-hybrid-thing for students. Carrying books was a HUGE problem for me growing up and don't get me wrong, I love a good Trapper Keeper, and notebook doodles. In fact I am a bit worried where the doodles would belong? And can they be archived and printed? BUT, this does make a lot of sense.
That gap isn't very helpful though for a children's book layout but the concept of having an entire library of children's books on one gadget, I think, is pretty cool.
Print is still my top choice for a children's book however. Turning pages is a religious experience.