Hello,
I have finally managed to view PDF files on the Ipod Touch and they are looking quite nice. I wouldn't really say it is better than a dedicated e-ink device but it's pretty good with the ability to zoom in and out and view documents in landscape and portrait modes.
The process does involve "jailbreaking" which means removing Apple restrictions. It didn't take me long as the tools now evolved to have a nice GUI interface. All in all it took me about 15 minutes after getting familiar with what needs to be done.
After jailbreaking, it really takes few seconds to add PDFs or other ebook formats such as txt and htm/html files to your Ipod touch.
To me, this makes it a very good gadget (mp3's, video, PDA capabilities, and now ebooks)
.
Cheers,
CG