eReader's current program is not a "hoax" as the eBooks are, indeed, free. It is, instead, more of a phishing scam to collect user information and to advertise their site.
Personally, I avoid eBooks in proprietary formats when possible. In addition to the already mentioned Project Gutenberg and Blackmask sites, Memoware (
http://www.memoware.com ) is also and excellent site for acquiring public domain eBooks