There are some 7 inch tablets for 100 plus a little that would work and Amazon has some 4-5 inch ones for 60-80 bucks - if palm is big enough that would also be.
But the kindle and nook have regular ereaders for that area as well. Target has them side by side if you want to snoop. Note taking wouldn't happen probably on a dedicated ereader though.
There are some bigger hand helds that run windows ce that might work. Search Ebay for mobilepro and jornada and you will find some probably.
For the money I would suggest a 7 inch tablet for comfortable reading. the 4-5 work okay but there is a lot of page turning :-)