Pierre Omidyar, founder of eBay (EBAY), is launching a for-profit news startup in Hawaii, where he and his family live. This is important news, and not just because he’s involved.

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Just when I was coming to terms with my ambivalence toward my Kindle e-book reader, Amazon and the publishers have gotten greedy.

I’ve had a love-hate relationship with the device since I bought my first one about 9 months ago. As a frequent traveler and voracious reader, I’ve found the Kindle to be nearly ideal. I never have fewer than a dozen books in its memory, and they’re always things I want to read.

As someone who believes we should often interact with media instead of passively consuming it, however, I don’t think much of the Kindle for any purpose other than reading a narrative. And given what a disaster “digital rights management” (DRM) is becoming for scholarship, culture and ultimately freedom, the device’s restrictions on how I can use what I’ve purchased are deeply troubling.

Still, I’ve been using it with some degree of satisfaction (as have enough other people to have helped boost Amazon’s stock price, so as the holder of several hundred shares I’m slightly better off in that way, too). The second-generation model improved nicely on the first–among other things, fixing some user-interface quirks, letting me charge it via a USB cable, and boosting the battery life.

The books I load onto the device fall generally under the casual entertainment category. I buy a Kindle book the way I buy a movie ticket (or did before going to theaters became such a crappy experience).

These are books, like most movies, that I’ll read or watch once and forget about. A physical book is more like a DVD–something I want to own and enjoy again and again.

So the kinds of books I tend to buy for the Kindle are the sort I’d often pick up at an airport newsstand, namely mysteries, thrillers and semi-trashy novels that I’d sometimes leave in hotels or airplane seat-back pockets once I’d finished them. (I also subscribe to several magazines, and consider it a favor not to see the advertising.)

Once I got accustomed to reading e-books, I started doing something that had been out of character in the analog era: buying new books that, in print, were available in hardcover only. Why? The price, typically $10 (okay, one penny less), was right. In fact, my new-book purchases soared.

But not for long. In recent weeks, Amazon (AMZN) or the publishers (or both) have done their best to deter me from buying the latest releases. Prices have gone up, way up.

Now, I often find books for which I’d have gladly paid $10 listed at $14 or $15. I save these to a list I keep on the Amazon website, called “Too expensive for Kindle,” and periodically check to see if the price has dropped. So far, not yet on any of these.

Hiking prices this way creates a bad deal for the customer. Amazon’s price for a new hardcover is typically just a couple of dollars higher. This means I could buy the hardcover, read it and donate it to my local library, and–after the tax deduction–come out ahead. I’d do even better taking the book to my local used-book store and getting cash.

But I almost never buy new hardcovers of books I don’t expect to reread or use as a reference, because a) I’m kind of cheap; and b) I can stand waiting for the paperback. So if prices stay high, I stay away.

Now, sellers have every right to charge more for popular books, especially when they’re new. This is basic supply and demand. But when the price only makes sense for people who consider the ultra-portability of an e-book paramount, that’s a turnoff for other potential buyers.

As a customer I also understand supply and demand. My demand is extremely elastic, and in this case it’s snapped.

Last week’s introduction of the Kindle DX was framed in many ways by different constituencies, but I was taken aback by the praise heaped on the device by several newspaper people, including the CEO of the New York Times Co. (NYT) (in which I also own a small amount of stock). Newspapers aren’t going to fix their considerable woes with Kindles, and anyone who thinks so lives in a fantasy world.

The DX, with its bigger screen, strikes me as potentially useful in several ways, possibly including the textbook function that Amazon hopes to jumpstart with the help of several universities (including the one that employs me). But if textbook publishers don’t radically cut prices on the outrageously expensive books they sell, they will find themselves creating a strong incentive for precisely what they don’t want: unauthorized copying.

I suspect the DX will prove most useful in more prosaic ways. For example, it could be a nearly ideal container and viewer for technical documentation–thick manuals that need periodic updating, where the cost of printing is prohibitive and the bulk of the books is daunting for the user.

Will all of this be made moot by the widely anticipated Apple (AAPL) “NetPad” or whatever it’s going to be called? I refer to a device that looks like a larger version of the iPod Touch, which would be a wonderful mobile multimedia player, among other likely capabilities.

I doubt it. If you enjoy severe eye strain, reading books on a back-lit, glossy display is just the ticket. The passive displays on Kindles, the Sony (SNE) e-reader and other such devices are much better for this kind of reading.

One size does not fit all in the emerging world of devices. Then again, one carry-on bag doesn’t hold all devices. For now, however, the Kindle has a place in mine.

Now that Steve Jobs has bowed out of the annual (and possibly the last) Macworld Conference & Expo this week in San Francisco, there’s considerably less likelihood of any interesting, much less compelling, announcements from Apple at the event.

Too bad in a way, because lots of folks were hoping that Apple might announce its arrival, albeit late, to the netbook party.

“Late” in this case is no huge drawback. The market for netbooks, defined here as ultraportable but still full-functioning personal computers, has barely moved out of infancy. The early models from industry leaders like Asus have been solid demonstrations of what’s coming, and for some uses they are just fine.

Jobs has famously said Apple (AAPL) can’t make a netbook that isn’t crap, at least at the price point the market currently supports. But Apple doesn’t sell its other computers at the prices PC makers charge in most cases. Its excellent software and reasonably solid hardware have always earned a premium.

Apple could and should take the netbook genre forward in ways that will make these devices utterly compelling. To see where the company should go, we only need to look back a decade–to Apple’s Message Pad, a.k.a. the Newton–and then extrapolate forward in fairly obvious ways.

The Newton was far, far ahead of its time: essentially a large-screen PDA that came bundled with useful applications and boasted handwriting recognition. Unfortunately, the early versions of the handwriting feature were so clumsy, sparking ridicule that included a hilarious send-up in the Doonesbury comic strip, that the device’s reputation scarcely improved even though the software did.

For reasons that remain mysterious, Apple killed the project in 1998. I suspect (with absolutely no proof) that this may have had something to do with the company’s rapprochement with Microsoft the previous year, when Microsoft helped save Apple by agreeing to keep selling its Office software for the Mac.

The Newton technology and its progeny were absorbed into Apple, and pieces have emerged in various ways over the years. But the fundamental idea of the Newton was a smart one, and today’s processing power, storage, connectivity and software give it more value than ever.

The rumor mill has Apple offering up a larger-screen iPod Touch sometime this year. If that’s all it is, then Apple will have missed a big opportunity.

What might an Apple netbook–let’s call it the NewBook (not the NewtBook, which would make people think of Newt Gingrich)–look like? And what might we do with it? The possibilities dazzle.

First on the basic hardware front, the Apple NewBook would use Intel’s Atom processor or one of the emerging competitors from AMD and other chip companies. It would come with enough RAM and flash memory to be a reasonably serious computer, running OS X, and would boast a real keyboard plus a variety of standard ports. A built-in still and video camera, plus a microphone, would be highly useful as well.

Second, the larger screen would offer more than the touch screen in the iPhone and newer Mac laptops. Beyond using finger-driven gestures to navigate, it would have tablet features, including handwriting recognition, annotation and much more. (Several PC makers are expected to announce tablet-netbooks at this week’s Consumer Electronics Show in Las Vegas.)

Third, given that that our data increasingly live in the cloud and on home and office servers, the NewBook would contain several radios: fast Wi-Fi, of course, but also GPS and one or more connections to high-speed 3G mobile networks. (Apple being its typical control-freak self, unfortunately, the 3G would likely be limited to one carrier.)

What could we (and Apple) do with such a device? Lots.

Beyond standard personal computing, Apple’s netbook could be an excellent e-book. I have an Amazon Kindle, which I like a great deal (disclosure: I’m an Amazon shareholder), but Apple is in a perfect position to grab a major share of this quickly growing market. The company could even sell books through the iTunes Music Store, something it could do now given that the iPhone and iPod Touch can be used as adequate (though the screen’s too small) e-books today.

The Apple NewBook could also emerge as an ideal personal entertainment system and solid gaming device. The iPhone is fine for watching some kinds of video on airplanes, but I’d welcome a somewhat larger screen. For gamers, the iPhone is already becoming an intriguing platform, but the NewBook’s larger size and processing power would undoubtedly spark an aftermarket for hardware controllers and other input tools as well as great software.

I’m describing the kind of machine I’d gladly carry on short trips in lieu of my MacBook Pro, which I use at home and at the office. But before I adopted it for that kind of use, I’d need dead-easy, robust and absolutely reliable synchronization with the 15-inch laptop and whatever data I choose to keep in the cloud. Given the mess Apple has made of Mobile Me, my money would be on third-party developers.

There’s one thing I’d hope Apple would not do: lock down the netbook the way it’s locked down the iPhone and iPod Touch. By all means, Apple could and should use the iTunes store to sell third-party applications. But by no means should it force customers to jump through hoops to jailbreak the devices so they can use what they bought the way they want to use it.

Apple was late to the MP3 party, but it beat everyone else with a system that changed the game. Could we see a similar breakthrough with its netbook?

Choosing a smartphone reminds me of the old adage from product-design people: “Good, fast, cheap: Pick two.” Much more so than a personal computer, a smartphone is an exercise in compromise.

This will continue to be obvious even after Apple (AAPL) announces “iPhone 2.0″ at this week’s conference for Macintosh and iPhone software developers. This new device, of course, is the updated version of the path-breaking model that was launched a year ago amid a blizzard of hype.

I continue to be an iSkeptic of sorts. I don’t own an iPhone, and even if all the rumored new features appear they probably won’t be enough to overcome Apple’s still-unfortunate choice of AT&T (T) as its telecom carrier partner.

True, no other device does exactly what the iPhone does. Conversely, the iPhone doesn’t come close to matching the most valuable features of the devices I do use, namely Research in Motion’s (RIMM) BlackBerry Curve and Nokia (NOK) N95. Let’s look at each to see why.

My primary device is the BlackBerry, for two major reasons. First, using T-Mobile’s clever UMA technology, which does a voice hand-off from cell to WiFi–something that works on several T-Mobile handsets, but not the BlackBerry Curve on other networks–I can use the phone (and save cell minutes and money) using voice over IP. This is especially helpful at home where the cell signal is weak, but also helpful given that it works with just about any WiFi network. AT&T hasn’t built UMA into its own network, and Apple’s first iPhone did not permit VoIP in any case.

Just as important, the BlackBerry’s physical keyboard–small keys that are nonetheless accurate and have a nice tactile response–makes it a mostly excellent email tool.

Mostly, but not completely–because BlackBerry’s email capabilities are designed around Microsoft Exchange. I do use Exchange for one email account, but IMAP on several others. And the BlackBerry has no IMAP client software that even understands how to flag a message as having been replied to, much less an understanding of folders.

I would pay good money for a solid IMAP client for the BlackBerry, but no one seems to care enough to create one. I suspect there’s a serious market for the first company that does this.

If the iPhone had a tolerable keyboard–and I find the virtual, screen-bound keypad nearly useless–it would be a vastly better email device than the BlackBerry, especially because it absolutely gets IMAP and is about to work with Exchange servers.

The iPhone’s camera is roughly equivalent to the one on the Curve: inadequate at best, with relatively low resolution and no video mode. Nokia’s N95, by contrast , is a great camera, with a 5 megapixel still resolution and 30-frame-per-second VGA video recording and playback.

I can “tether” the N95 to my laptop and use it as a modem; no such common-sense usage with the iPhone. The N95 also has WiFi (and handles VoIP) and 3G, invaluable for international travel; strong rumors say the iPhone will remedy the 3G situation in the new version.In fact, the N95 has almost too many high-end features, a key reason it has especially poor battery life. GPS is another N95 advantage; again, there are strong indications that the iPhone will also have it–and the large screen on the Apple device makes maps a joy to use and view.

I do love the iPhone as a media playback device, however. That’s why I bought an iPod Touch, which is roughly the same size and has become my portable media system of choice, especially on airplanes. And when it comes to Web browsing, it’s absolutely no contest: The iPhone blows away the Blackberry and N95.

Apple raised the bar in a serious way when it comes to software. While Nokia’s operating system has been much more open than the iPhone’s (or BlackBerry’s)–something Apple has halfway remedied with its semi-open new development model–Nokia has a long way to go to get even close to Apple in basic usability. The BlackBerry is quite easy to use, but still far behind Apple in many respects.

Will I buy an iPhone when the new models hit the stores? I still don’t know. Apple’s insistence that legitimate software will only be available through its online store is part of the company’s typical arrogance. And its continued lock-in with AT&T is close to a deal-killer no matter how good the device may be.

Of course, you can “jailbreak” even the current iPhones. And it’s looking as though the new ones will be even more malleable, at least theoretically.

No matter what Apple introduces, the compromises will continue, however. But the time is almost in sight when we’ll have just about everything we want–not just what we absolutely need–in our handhelds. Not real soon now, but sooner than we might expect.

Marc Andreessen has inaugurated the “New York Times Deathwatch”–and the data he cites should be giving the Times-folk nightmares. But then, the company’s board of directors is a particularly inept group considering the absolute need to move, fast, into the digital world for real, with all that means.

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Having seen Apple’s MacBook Air notebook computer up close, I’m as dazzled as everyone else who’s had a chance to examine this delicious piece of industrial design.

Dazzled doesn’t translate to handing over a credit card, however–at least not yet, and not solely because it’s almost never a good idea to buy Apple’s (or anyone else’s) hardware immediately after its initial release.

Even if serious flaws didn’t frequently surface in the company’s first batch of new models, I’d hold off on buying one of these, despite my admiration for the genuine accomplishments in this one. Cost isn’t the issue; rather, there are just a few too many feature compromises for my work-style.

My friend and your co-host here, Walt Mossberg, explained them well in his recent review. They include a nonremovable battery; non-expandable RAM; a paucity of ports; lack of an on-board optical drive; and a relatively small 80GB hard disk. (I wouldn’t even consider the flash-memory model for the moment, due to its high price and lower 64GB capacity.)

The somewhat modest central-processing power is a non-issue. Intel’s new Merom-architecture chip, running at up to 1.8GHz, has plenty of muscle for the kinds of duties a machine like this would typically handle. Graphics and media professionals would disagree, no doubt, but this ultra-svelte device isn’t aimed at them in any case.

I certainly can imagine why some folks have already ordered one. A frequent traveler whose computing tasks include little more than email, document-handling, Web browsing and watching a video will have lots to love.

But if she’s one of the increasingly global members of the workforce, and (unlike Steve Jobs) flies coach internationally except when she’s lucky enough to get an upgrade, she’ll discover that the roughly 5-hour battery life is good enough for domestic travel. And if the battery gets flaky or fails on the road, as has happened to me in two laptops, one an Apple, she’ll be up a creek.

Laptop batteries wear down eventually. Apple says it’ll replace batteries for the same price as MacBook batteries, with no labor charge, but there’s a serious inconvenience factor in having to take or send the machine to a repair shop.

Our otherwise happy purchaser will encounter other problems. She’ll arrive at her hotel one day and discover that there’s no Wi-Fi in the room. Out will come a dongle that fits into the single USB port, which is contained in such a tiny space that lots of USB devices will need extender cables, allowing her to use the room’s wired Ethernet connection.

In fact, it’s already clear that anyone doing serious computing will be hauling around a slew of dongles for the MacBook Air. The adapter for video presentations is a fact of life already for Mac notebook users. You’ll need a small USB hub just for starters, plus various adapters for things like an EVDO or other high-speed cellular modems that many serious travelers now rely on for domestic connections.

Apple’s design choices were surely aimed at one goal: creating the thinnest, lightest and most beautiful notebook around. You can find lighter Windows machines, but they have even more compromises, often including dreadful keyboards. (Not that I’m a fan of the Chiclet-y keyboards Apple now includes with everything but the MacBook Pro; some folks love them but I’m distinctly underwhelmed.)

The best keyboards on any notebook computers are in the ThinkPads from Lenovo, which bought the line from IBM a while back and, so far, appears to have maintained high standards. The smaller ThinkPads, especially the X models, are sturdy, reliable, capable and smartly designed in their own right, though not remotely jaw-dropping like the new Macs. But the ThinkPads have been the absolute class of notebook computers for many years.

Which leads to the obvious point–something I and at least a few other people have been publicly advocating for a long time, not that Apple is paying any attention. We keep wishing that Apple would either make a deal with Lenovo to sell ThinkPads with Mac OS X as an option, or make a deal with whatever company actually manufactures the ThinkPads. Then we’d enjoy the best of both worlds. (An upcoming ultra-portable, ultra-capable ThinkPad model would be the perfect machine for the Mac OS.) I would pay a premium, and so would plenty of other folks.

Some day, I predict, Apple will make such a deal. While we wait for Steve Jobs or his successor to realize why it’s a good idea, we can expect a host of improvements to upcoming versions of the MacBook Air. Not incidentally, some of these will also make Apple even more money.

Keep in mind that the relentless pace of technological improvement means that the processing power, memory and storage capacity of the MacBook Air will get dramatically better in coming months and years in any case. So that 80GB drive will be 160GB next year, and the 64GB in the solid-state version will double, too, for the same cost. As always, customer patience solves some issues.

But if I were czar of the MacBook line, I’d do two things right away. First, I’d find a way to make the current model modular, with one additional port that would connect to a dock in the home or office or both; the dock would in turn connect to a monitor, keyboard, mouse, printer, Ethernet line, external storage and other typical gear. This would resurrect the still-classic mode of the old Mac Duo notebook systems, which even now are fondly remembered as the best hardware combination of Apple’s portable-machine history. (Of course, the PC-laptop world–and, yes, the ThinkPads–have been doing this for a long time.) The docks would, like other Apple-made peripherals, become a profit center in their own right.

Second, I’d launch another notebook model. Call it the MacBook Air Pro. It would weigh a half-pound more than this one, and it wouldn’t be quite as gorgeous. But it would add back ports such as Ethernet and Firewire, along with a more capacious hard disk, removable battery, MacBook Pro keyboard, built-in EVDO and expandable RAM, among other things.

Meanwhile I’ll count on all you early adopters to find the inevitable bugs in the first batch of MacBook Airs. And I’ll count on Apple, as always, to be a pace-setter in design.

But I suspect I’m in a large class of potential customers. I’d love a computer that’s high art, but I need one that’s right for hard work.

Talking Points Memo’s Josh Marshall reports that he’s been “Banned at the DoJ”–taken off the email distribution list for press releases and the like. This has to be one of the more lame governmental PR decisions of the recent past.

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Apple’s new iPhone may well be a revolutionary product in some ways. But after testing one of the devices that went on sale late last month, I’m steering clear, at least for now, of the most shamelessly overhyped consumer product since Windows 95.

For all its admirable features–the large screen, gorgeous industrial design and advanced user interface in particular–the iPhone feels like a beta product. It’s still early in development and suffers from deal-breaker drawbacks.

The worst is the overall control-freakery from Apple, the manufacturer, and its telecom partner, AT&T. You want choice? Not a chance.

Consumer Reports notes that AT&T is one of the least-favored U.S. mobile carriers, for network quality and customer satisfaction. Worse, the company’s low-speed digital network is inadequate for a device that boasts of being Internet-native, and the Wi-Fi capabilities don’t make up for that lapse. (And never mind AT&T’s recent decision to become Hollywood’s accomplice in tracking customers’ Internet activities, not to mention its Big-Brotherish coziness with government snoops.)

I’m a frequent traveler outside the U.S., and this phone doesn’t cut it for serious international use. If I want to make GSM calls, I’m stuck with AT&T’s roaming rates; with my current phone I can swap SIM cards to use another carrier’s cheaper local service if I don’t like the international roaming rates from T-Mobile, my current carrier.

Apple can’t fix AT&T. But the device itself, however alluring, needs upgrades. For example, on the international roaming front, the iPhone provides no access to other carriers’ 3G networks, which means the phone won’t work at all in places like Korea, where my 3G-equipped GSM phone works fine.

The onscreen keyboard isn’t bad if you’re “typing” in landscape mode in the Web browser, because the keypad in that mode is sufficiently large to help you avoid errors. But if you’re trying to create an SMS or email message in the phone’s portrait mode–it doesn’t adjust to the sideways view with those applications–be prepared for some frustration. I wasted lots of time backspacing over mistakes and retyping things, and the “predictive-text” feature didn’t predict my words with much accuracy.

The camera is adequate for some purposes, and that’s the best you can say about it. There’s no zoom, and no video recording mode.

An especially cheesy “feature” is a headphone jack that requires an adapter for many popular headsets (or some surgery on your current headphone plug). There’s no excuse for this.

Then there’s the nonremovable battery, which Apple says is designed for at least 400 charge cycles and an unspecified number of charges at up to 80% of battery capacity afterward. That will steer people–perhaps this is the idea–toward new phones. Meanwhile, Apple has found another way to make money on this design choice: It’ll sell a new battery for about $80 and keep your phone for a few days in the process.

Despite running a version of the OS X operating system, the iPhone is locked down in its software capabilities, which means that third-party software developers–and therefore customers–are mostly out of luck if they want the kind of applications that have made other smart phones so versatile. Apple’s claim that there’s enough flexibility in the Web browser for third-party development is beyond ludicrous; it’s downright insulting.

More lockdown: The iPhone is unusable in any capacity until it’s activated with the phone company. Want to use it just for Wi-Fi-based Web browsing, plus video and audio and note-taking? Forget it.

Still more: I can use my current phone as a modem with a PC or Mac, something I do on occasion when out of range of a broadband or wireless network. The iPhone doesn’t allow this. Why not? (To be fair, some phones are locked this way.)

No doubt, some of the iPhone’s current drawbacks will be resolved with software upgrades. Some problems can’t and won’t be fixed, at least not in the U.S. version, where AT&T will be the exclusive carrier for the next few years.

All that said, I do love the way the thing looks and feels–and in many respects, the way it works. If other phone-makers don’t adopt the iPhone’s best features (I assume they will), I’ll definitely consider getting one at some point.

But I’ll consider it only when Apple starts selling it in Europe or Asia with 3G capabilities; when I can install a SIM chip from the GSM/3G carrier of my choice; when the software is significantly upgraded; and when third parties can give me the features I want, as opposed to solely the ones Apple thinks are good for me.

That sounds like iPhone 2.0, at the earliest. For now, the initial product doesn’t come close to living up to the hype.