E Ink is showing some new color Triton (Gen 2) E Ink prototypes, including one with front light. The displays are getting better, they say it's now almost like LCDs. Even though quality is better, and production costs have gone done, E Ink still does not see mass adoption of these panels by e-reader makers any time soon.
E Ink managed to get the color filters closer to the E Ink microcapsules, which means that more light is reflected from the displays. Coupled with the front-light technologies, the displays look better then before.
Triton 2 displays can display 4096 colors. The panels use rectangular pixels and not square ones like on the B&W Pearl displays and the older Triton 1 displays.