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The Amazon Kindle and the Barnes & Nobel Nook Readers are probably top of the heap if your looking for small, dependable, b/w e-ink, and well supported. Both readers have their own respective bookstores backing them so it's really apples and oranges on purchased books. Not to mention fairly decent battery life.
If your wife has an existing book collection you will probably want to go with a device that supports her favorite file types.
And if you want a color ebook reader you should probably wait another few weeks if you can for the impending tablet computer explosion. Thirty or so tablets are nearly at market or out recently ranging from 200 -1000 depending on specs.
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