It was not e-ink but a reflective panel viewable in bright daylight that also had a backlight for indoor/night use. They had a 10" netbook panel commercially available.
It makes me wonder if reading about another exciting screen tech such as this will suffer the same fate. Maybe someone else knows why.
People want this. Anyone who wants the ability to take a small laptop outside on a nice day and be able to read the screen wants this. I don't particularly care about Negroponte's goals with OLPC but it did bring some technology into discussion that isn't typically used on mobile devices (lithium iron phosphate batteries being another thing to use for rugged outdoors devices...)
Digging up a bit more research it seems Toshiba was the last to use transflective in an ultraportable size. Here's one in action: https://www.youtube.com/watch?v=WXO7u6bzVGQ