I actually use both, for different reasons. The iPad is better when I'm doing something that requires taking notes, like research projects. Or when I'm reading back logs of blogs, comics and the like. My Sony is so much nicer for longer amounts of pleasure reading, and is usually device #1 when looking at taking a vacation.
I find the e-Ink of the Sony at 160 PPI better than the 130 PPI of the iPad for raw text which is part of it. The simplicity of something that looks like paper helps as well, my eyes don't have quite the crisis in different light conditions that require me to tweak and adjust the backlight every so often.
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