I have a Motorola Droid which I use as a backup reader and it works very well.
I use both Aldiko and eReader on it and have no problems with either. I tried FBReaderj and while it worked well it didn't really do anything more that I needed than Aldiko so I removed it to cut down on the number of apps.
The biggest advantage I've found with the Droid is the screen - it's 854x480 at 3.7" so it's both a little bigger and a lot higher resolution than the iPhone which runs 480x320 at 3.5". (It's 266 DPI against 160 DPI.)
If you're on Verizon I would strongly recommend at least looking at the Droid - I've read a complete novel on it with no problems at all.
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