I put some books on my mother's Note II. I also installed Aldiko as reader (I had forgotten that Mantano has a free version as well...). I think I could read on it for a long time.
About the pen, I thought it was a tad too thin to hold comfortably. And I prefer the HTC Evernote app I have on my Flyer over the app on the Note II... (but that could be because I'm used to that very much...)