So the Navy wants to give books to their submarine crews.
Actual books would require far too much space, so they went with electronic books. Ordinary electronic devices can be security threats, so they closed all the security holes.
Honestly, how is this the "world's worst e-reader"? This does exactly what it's supposed to do - offer submarine crews the chance to read at least some books without taking up space or creating security vulnerabilities. They would have few to no books at all to read otherwise, so I don't see how this is anything but a massive step forward.
The military is very good about paying for only want it wants and needs. If they want a survival firearm for tank crews or pilots, they don't just give them the standard issue battle rifle that a grunt on the ground gets - they give them something suited to their needs. They give them a compact, reliable, easy to use weapon with a high ammo count - and nevermind that the weapon has a short range or low stopping power compared to a battle rifle, as those attributes aren't important for the weapon's intended role.
The same is true of the books they give to submariners.
No camera? Why would they need a camera? No internet connectivity? Why would they need that, especially in a submarine? No removable storage and no means to update the contained data? That's no worse than paper books, and it keeps the device secure!