Magnetophoretic writing tablets were 3 for $10 at the drug store down the street last week. They don't require any power to draw, display, or erase and I'd guess their contrast ratio is better than the current electrophoretic/e-ink displays.. but the ones I got are cheap knock-offs. The true Magna Doodle has better resolution and contrast.
My exact thoughts when reading this, I was playing with a similar device yesterday but it was my daughters Dora the Explorer Magna Doodle... maybe TechCrunch should feature that next.