Is Plastic Logic the next eReader vendor to "circle the drain"?

According to Engadget, Plastic Logic has sent an email to customers who pre-ordered its QUE proReader to expect additional delays. Plastic Logic contacted customers in April to tell them that the device wouldn't ship until June 24th. Now, they've sent out a new email announcing a further slip in the ship date (without disclosing a new ship date), and more disturbingly, they've canceled all pre-orders.

Plastic Logic may be completely redesigning its reader to be price-competitive in the new regime of under-$200 eBook readers, or it may be reconsidering whether to be in the eBook reader business at all. If the company expected to ship a new model in a reasonable amount of time, there would have been no reason to cancel all the pre-orders. This doesn't look good for Plastic Logic.