I just wanted to chip in a slight variation on this theme. We don't have any ebook readers, but I've had some good luck in turning some of my students onto
dailyreader.net. It delivers books over email, so it kind of sneaks the reading into the normal day of the kids that spend
all their time on the computer.
That said, I'd love if we could budget in readers for all the kids but I just don't see it happening.