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My only problem with the current Ipad as an ereader is that it's current display is not entirely comfortable to my eye and it is a bit heavy. (currently it's a bit like using Swiss army knife to cut my food). As far as a PDF reader, Kindle doesn't even register - everything is a kludge PDF wise and the Ipad offers the portrait option to display PDF's unlike laptops.
A lighter Ipad 2 with retina display (as speculated at various sites) would offer a great ereader experience. I do prefer the retina display to e-ink.
I do wish Apple comes out with a 7" Ipad 2 or 3 - I don't believe Steve Jobs when he says a 7" touch display won't work because of finger size. I've tried a Samsung Galaxy Tab and it's the perfect "hand" size, though I don't think it's ready for prime time.
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