The reader def. I live just outside of DC and there are two Sony Connect stores nearby. I've always liked Sony products, the Illiad is too expensive and I've never trusted communist products so it's really the only choice I can live with.
The html issue isn't really a bother for me. I'm in politics for the most part and half of what I read is policy papers in PDF format anyway and it looks like the Reader is perfect for that. I have a large current collection and much of it is in html but seriously people, converting that is a snap. Looks like all I'll have to do is spend a few minutes each week (or every few weeks) converting the html, hardly a hassle.
The only problem I have now is comics, I have a lot of them on my computer. I'm not sure those are going to render well at all. On the other hand, there isn't any device that has color anyway (yet) and most are short enough that I can read them on my computer or laptop anyway.