As an iPod touch 1g owner, I can say the device is ideal for checking your mail, and the Kindle app will read your books mighty fine. Other apps can take care of your other needs.
However, if the iPod touch 1G is the one you are about to buy, you really do need to jailbreak it right away. Some of the apps from the App Store are not working anymore in it (which means "goodbye" to my good monies spent on Twittelator and iCompta
) and jailbreaking it
could (I don't know for certain) allow you to read OO files with some kind of app fron Cydia.