The first ebook I read on a portable device was Dracula (via Gutenberg) on my Palm IIIxe nearly 10 years ago. I read it just to prove I could, but I never read another on that device... small screen, hard to read without the light being just right. Didn't like reading books on the computer, so I set aside ebooks for several years, wishing I could afford a dedicated device.
I didn't start reading on a portable device again until three or four years ago on a Nokia N810 "tablet" and FBReader (about the size of an iPhone, but heavier). Compact, with a decent screen and battery life, but it turned out that ebooks are all I use it for... been wanting to upgrade to eInk for awhile now, so for Christmas my wife got me a Pocketbook 301+.
It's a neat device... larger screen and far, far lighter than the N810. Haven't dealt with lighting issues yet... can't beat backlighting for reading in bed in any position without worrying about the lighting angle. Or at 2 AM with the lights out so your spouse can sleep.