Isn't that how color images printed paper works, too? We use inks (often in CMYK coloration, but a galaxy of other options exist) to subtract light from what would otherwise be reflected by a plain white paper.
What makes e-paper screens worse in this way?
No. When you print a piece of paper some color, e.g. red, it will be completely red. But most e-paper screens will only be 33% red (optimistically) and 66% black. This is because physical pixels usually can't change color themselves, only brightness, so you use three of them, and darken the RGB components, to produce a colored pixel.
For displaying white on color e-paper screens you will have three non-dark RGB sub-pixels, but each color component only reflects at most a third of the incoming spectrum, either red, green, or blue wavelengths, while white paper (or monochromatic e-paper screens) will reflect all three wavelengths everywhere.
Yes, or more precisely: reflective displays without backlight. There were many such display technologies a while ago (when the Kindle took off and various companies tried to compete with E Ink), but most have since been abandoned.
Pretty much all colored e-paper screens have much lower contrast than color printing on paper, since they mix colors by using can conventional RGB sub-pixels and darkening them individually, just like regular lit screens, which reduces the amount of reflected light.