Makes sense. Single-purposes devices are kind of cool. It's why eBook readers have a place in a world where tablets exist.
I don't know about AlphaSmart though - the screen is too cramped. I suspect after the initial euphoria of finding another way to write wears off, the author will get tired of the limitations and go back to writing on a tablet or PC. Having said that, maybe there is a market for a writing-only device, similar to a read-only eBook reader.