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I wonder if Android Wear wouldn't work as an OS basis for this - lower power requirements, probably allows black-and-white screens. The problem there is that Android Wear is absolute hot garbage that can't decide if it's stand-alone or companion to your phone.
Why is not just targeting raw AOSP instead of Google Android not considered? It seems like you could use modern hardware with that... is it the lack of Play Store that's the dealbreaker?
I don't really know how they do it, but some do run newer Android versions like Android 14 (Meebook M8, Bigme B7). Anyway, the lack of Play store isn't really a consideration in China, it's only for foreign markets they have to include the Play store. This also means that China has many more Android e-ink brands than are available to us (which mostly are Boox, Meebook, Bigme or Hisense).
I guess that there are two issues: First of all, you can find someone who can slap standard Android onto a standard device. Finding someone who can work with a raw AOSP is harder and will be more expensive. Which is exactly what you want to not do when trying to build a really cheap device. And Google has started to move more and more services and security updates to their own platform. Using AOSP is a really bad idea
