I use my iPad for occasional reading in specific formats. It works best for Manga and books which need colour reproduction for the images. i use it in low light situations and keep the backlight at the lowest level when so doing. At home, in the evening or in bed the iPad is nice to use.
In most situations I use the Kindle 3. It result in far less eye strain and the screen is very clear in normal lighting.
The iPod Touch is the least used of my three devices as a reader, but the small screen is easier to use than one might think. One only gets maybe a paragraph or so on the screen so there's lots of page turning! And you've got to watch the battery level. It's useful for short sessions.
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