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The other device you might consider is the Nokia 770 (no longer made, replaced by similar N800 and N810) with FBReader. It cannot read DRM-laden e-books and its battery life is perhaps 4 hours, but it is otherwise a very good e-book reader and it does come with WiFi. The screen is almost exactly half the size of a Sony, but because it is usually held in "landscape" mode all this means is that you need twice as many page turns (which are very fast on the 770). It is also backlit and color. The more expensive N810 has a sun-light readable display.
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