Thanks for all the replies.
I placed an order for the iLiad but now I'm thinking I might be better off with one of the smaller readers. I cut some cardboard to the dimensions of the smaller screen and read the books on my LCD through it. The text was a bit small but perfectly legible, especially when rotated. I assume it would look better on the real thing. If need be I could always convert them.
Without margins they seem to be around 6x9".
Here is a sample page. Would that be legible?
$400 for a larger screen seems like a lot. I don't think I'd use the pen at all.