While I also think that they (k3 and iPad) are a little bit too small I've found the size for reading in the iPad adequate for scientific papers this is due to the pich to zoom feature which works really fast. Any graph/photo you want to look closely->zoom-> awesome. And if you want anotations on pdfs... well... I'm sure I saw an app for doing that, but I'm happy with my papers in Stanza.
Although if you want advanced anotation (OneNote). You should thing about a pound weight more and get yourself a tablet pc. ORRRR... wait for the perfect tablet with 10+ h and all the funky ports and parts you want! wait until your bones turn to dust! =P
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