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Having a Kindle DXG for a few months i would rather recommend the iPad than the KDXG although 6" Sony PRS-650 would be best for reading.
KDXG has no colour, no touchscreen and poor support. PDF support for KDXG is worst compared to cheaper K3 and it seems that Amazon doesn't care about their KDXG customers.
iPad has colour, touchscreen, can play movies and browse the web better than KDXG.
So, coming down to the requirements you mentioned buy the iPad and be happy. Don't waste your time on KDXG.
If you prefer very good reading over size, colour and movies than try the Sony PRS-650 or PRS-950 (7").
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