I have both a Kindle3 and iPad. I carry both of them with me in my bag. I tend to pull out the Pad more often than the K3. I also have an iPhone which I don't use for reading because of battery life and size. I think i prefer my Pad because it shows magazines, TPB and comics so well. Even if my K3 were in color it would be too small. It's great for simple text but pictures don't go over well enough.
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