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I switched to an e-ink reader from a Sony Clié because I got tired of the battery dying mid-book. I think battery life is going to be a concern with any small-screen device; they're all expecting you to want color and other options.
I've considered getting an iPod Touch, which apparently can have longer battery life than the older PDAs, but after a couple of years with my PRS-505, I don't think it'd be long enough. A 5" reader like the Sony 300 or Bebook mini or Jetbook/Jetbook Lite might work for you; it might feel weird & big when you first have it, but I got used to the 6" screen (which still seems too big sometimes; I want an Astak Pocket Pro next); a 5" screen might not feel as big after you get used to it.
Otherwise, check eBay and other used-electronics places for secondhand PDAs, which would work fine, but have the battery life problems. None of them were built for 3-6 hours/day of constant activity.
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