Oh, if you can get what you want for that sort of price, don't let me stop you!
This isn't sold as Android though. It looks like a proprietary fixed function device, and not necessarily a great e-reader. No DRM support. In fact, despite being sold as an e-reader, it doesn't say what ebook formats it supports. The reader reviews are not very encouraging. As I say - I would want to try this out before assuming it could even do what
I wanted from my ereader (usable reading of text-only HTML), let alone what you're asking for
. The lack of battery life information is particularly hilarious.
My concern about Android versions would be that if you bought an older Android device, after looking up what "Android" can do, and then found that the older version didn't support the specific features or applications you researched. Honestly I know very little about it. I've just read that the manufacturers tend to have very little interest in upgrading a device you've already bought, some of the devices are locked down so you wouldn't see "community" upgrades; and the original version wasn't written with tablets in mind. My suspicion was that once Honeycomb exists, development of apps which take advantage of (or even work correctly on) larger devices could easily shift to being a Honeycomb-only. I'm probably being a bit pessimistic here; I've seen good reviews of pre-Honeycomb tablets. You just have to remember to do your research if you're trying to troll the bargain aisles
.