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Effective resolution of a paperback would be around 450dpi in digital terms, and with much better contrast than e-ink.
The issue on font size is to disrupt the reading less often by getting more words on a page.
A good font for a low-res device can mitigate the resolution shortage by using thicker serifs that are not tapered, and using constant stroke widths, rather than shaded strokes. Have a look at any of the Lucida family for fonts designed for low-res displays.
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