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The 3GS still does everything that it did on day one, as well as it did on day one. The problem will be that many apps move forward and add functionality that requires features in newer OS releases. While the 3GS can be upgraded to the newest 5.x iOS, it may run slower than it did with the 4.x software. [not sure if it'll support the upcoming iOS6 release] If you find a reader app that you like you may not be able to upgrade it well into the future, but if its one that you can download generic epub files to via the browser then it should continue to work well enough indefinitely.
I've not used a 3GS more than a few seconds myself, but having watched people use them, they seem to work just fine for basic functionality.
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