For LCD devices, I like the Nokia 770 or the newer N800 and N810 Internet tablets, see
Nokia N800 Internet Tablet as an e-book reader?. However, their primary e-book reader is FBReader and it does not read DRMed (encrypted or "secure") e-books. You can read secure MobiPocket e-books using a Palm emulator, but only in 320x480 of the 800x480 screen.
The other option is E-Ink with a reading light, see
But what about the Kindle's Reading Light?.