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To me it's the lightness first of all. Followed by the screen quality (Gen3) folder view and fonts (as mentioned before). I stick to the mobi-firmware as it supports dictionary lookup, which works really well.
I also should mention, that the actual reader software (booreader) does a very good job (eg. compared to FBreader in some other devices).
Since Firmware 1.5/2.0 the boot-time got down to some 15 seconds, with 1.6 there is standby, which gets you back into your book instantly (it has some impact on the battery time though).
You cannot surf the web with it or download books directly over the air, but if you want to actually read, it still is a very good choice. I like to play around with my PB302, but when it comes to reading, I grab the Gen3.
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