I'm not in the USA, so I don't know B&N (although my company provides some of the hardware in the Nook).
However, B&N's main advantage compared to Amazon is its network of B&M stores, right? Now, the bet here is "let's lose money on the tablet, and hope that people buy tons of ebooks".
I'd guess that people for whom the existence of B&M stores is important aren't going to be the biggest ebook buyers: they'll be more into dead tree books, on average. If B&N subsidizes their Nook, and it's only used as a web browser, B&N has lost.
Barnes & Noble also has in-store cafes and their in-store Wi-Fi offers Nook users free reading and coupons for goodies in the store. I'm not sure how many people take them up on it, but it seems like they are at least playing with a business model.
However, B&N's main advantage compared to Amazon is its network of B&M stores, right? Now, the bet here is "let's lose money on the tablet, and hope that people buy tons of ebooks".
I'd guess that people for whom the existence of B&M stores is important aren't going to be the biggest ebook buyers: they'll be more into dead tree books, on average. If B&N subsidizes their Nook, and it's only used as a web browser, B&N has lost.