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I'm also in the "used to" camp. The Sony 350 is crazy portable, so now that I have it, I always have it with me, and I don't need the phone for reading anymore.
Although the 350 is small, its screen is quite a bit larger than my iPhone's, giving it a less cramped feeling, which is why I prefer it to the phone. (LCD doesn't bother me, and the iPhone's retina display is amazing...it's just to small.)
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