I like the form factor, but didn't need it to be a continuous screen. A clam shell with a distinct screen in each half would be more durable and would surely bring the price down too.
Also your idea sounds pretty bad. No wide screen videos, and why not just put a keyboard in the bottom half to reduce costs further?
I wouldn't mind a thin gap between two screens as long as you won't notice it too much while swiping.
But maybe it's very difficult to make a hinge that keeps the screen a µm apart all the time.