The Laser EB101 falls into this category. Instead of using e-ink, the low-powered screen technology that only draws power when it changes the image on screen, the Laser uses a 5-inch-thin film transistor LCD screen. That means you can view photos and video on the device, but it also means that battery life won't come anywhere near that of an e-ink device. Specs state that you'll get six hours of eBook reading, which is a pale comparison to the weeks available on a Kindle.
Costing $150, the Laser eBook reader has 2GB of internal memory and supports up to 16GB with a MicroSD card slot and weighs under 300 grams. But perhaps most interesting about the Laser eBook reader is that it claims to support DRM files from online bookstores, including Amazon. I've asked Laser for confirmation about that – Amazon generally aren't the most willing to license their DRM technology -
although if true, it would be a huge coup for the Aussie company.
UPDATE: Nope, it doesn't support the Kindle's .AZW files, which isn't really surprising...