I’ve been following Engadget’s coverage of the Barnes and Noble Nook event in New York City this afternoon. Ross Miller kept up a running live blog detailing the announcement. Let’s get the basics out of the way: The new Nook has a color, backlit touchscreen, it runs apps built on Android and it’ll be available starting November 19th for $249.

The color touchscreen and apps make me think the Nook isn’t really an e-reader. Or, at the very least, it’s not just an e-reader. Instead, the Nook slips into the same category as the iPad. But is that a good thing? I think the iPad needs competition — it’ll help push Apple’s innovation and give consumers more choice. But I’m not convinced the new Nook can compete with Apple’s runaway success.

You could argue the new Nook’s features set it apart from its chief rival in the e-reader marketplace: Amazon’s Kindle. But at $250, is the Nook competitive? Is a color touchscreen that important for people who just want an e-reader? And if the Nook’s target audience is potential tablet customers, are the new features compelling enough to convince folks not to buy an iPad?

I’ve thought about purchasing an e-reader for myself. I’ve also played with the idea of throwing in the towel and buying a tablet computer. But the feature I like on e-readers like the old Nook and the Kindle is the e-ink, which is easy on the eyes as well as on the battery. I don’t care if the e-reader can surf the Web or play music — I just want to read books on it. But I could be in the minority.

What do you think? Is the new Nook filling an important, well, nook in the marketplace? Will it be a runaway success? Or do you think that people will either choose a cheaper e-reader or a more expensive tablet?

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