Originally Posted by JSWolf
Will you enjoy reading small text on a small screen through a haze of fingerprints
My answer is, at least to the latter premise, "Yes". I have almost never noticed a "haze" of fingerprints on my iPod Touch, and, when I have noticed similar (full sun perhaps), I've wiped it on my shirt/shorts/whatever to clean it. I am a frequent user of it, mostly with applications that require touching the screen continuously, but "fingerprints" have never been a problem worth noting to myself. I cannot empathise with the reactions of those who do find them bothersome.
and having the battery die in the middle of reading?
Well, as my usage patterns would generally have me only reading this for rare moments of unexpected downtime away from home, I'd only foresee me reading on it for 10's of minutes rather than hours. If I used it as my primary reading device, that would be in bed, where I'd inevitably have my charging cable handy to keep it charged. So, this would also likely not be a problem worth noting to me.
Having both, if I had to give up either, I'd easily give up the Iliad. The iPod Touch is a multi-application device out of which I get a hell of a lot of non-reading-related use through its available applications (and then there's the music), and even if I didn't want to actually read on it, in the absence of the Iliad I can still get all the pbooks I want. For preference to read on, however, the Iliad wins by a large margin.