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You do not need WiFi or 3G to use the library. My understanding is that library books are downloaded to your computer and then side loaded onto your e-reader.
If you want to read at night and do not want to use a light then you will have to get an e-reader with an LCD screen. Wallcraft already covered your options if you are going that route.
If you are willing to use a light then you have a ton of choices in your price range. The Kindle, Nook, Kobo, Sony 350, and a few others that I am less familiar with all fall into that price range.
If you live in the US I would suggest going to Best Buy and looking at the Nook, Kindle, and Sony. All three are found at the one store. You can get a feel for which e-reader feels the best to you. Check out the button placement and make sure you are comfortable with how each one navigates.
Then check out the online bookstores. Which of the bookstores has the majority of the books that you are interested in at a price you are willing to pay.
Hopefully that will help you narrow down you choices.
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