This is Sony’s own video (notice how pinch-zoom is not shown live):
Update: A third video showing pinch-zoom after the break!
And here is another video, from Engadget, also not showing pinch-zoom:
Sony’s reworked a lot of that UI.
I still don’t know if this is based on Android. It is is, it’d outsell the Nook Touch to people who want to root it and turn it in a lightweight eInk ersatz tablet. I’d want one just for that!
This video shows pinch-zoom but I think it’s being used on a PDF because the text is not reflowing: