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One other thought -- the answer may depend on your age. Like, HarryT I have read ebooks for many years, including time spent using pda's with much smaller screens.
It may be because I have better choices now, but I really don't think my eyes could handle a pda anymore. If you are 20-something then you may not have problems with an iPhone. If you are 80-something it may be a problem.
Of course, the real problem is not really age-related. Its eyesight related as others have mentioned.
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