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One point I'll add in favor of the iPhone is that I always carry 3 books on my iPod nano. That said if I had an iPhone I would do the same. But this is still a hard core thingie with people who read a lot compared to the norm!
An other point against though is that we still don't know if Apple will consider ebooks. For the moment they are willfully brushed aside and prevented to be easily used on all Apple portable devices. What would completely negate Pournelle's comments is that Apple could come up with its own reading device or an iSlate; crossover between computer, tablet and iPod. Who'd need the iPhone for reading then? (Full time not occasionnal)
For someone to try reading on an iPhone would be a one time deed at most. Not enough to justify investing in a book market. In opposition, someone buying a dedicated reader will get hundreds of books. To compound this Sony has managed to capture(again) a readership with a DRM assured site. Not only have they sales of devices but they assured themselves of future book sales. How popular will it maintain itself is still up for further discussion.
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