I know it is an OLD device but by total luck found a deal on a Sony Clie nx73v.
1. The display is HiRes+ (320x480) and about 4".
2. It has a jog dial on the left side (holding it in portrait orientation) so one handed operation is GREAT. I especially like the one handed page turns when reading in bed at night or while eating lunch, dinner, enjoying some coffee.
3. You can add Wifi with a hack'd driver and a Prism 2.5 based CF NIC. When in Wifi range I use this now to access sites like
http://FeedBooks.mobi (all free stuff and well done too!) where I can d/l books directly to the PDA. Same goes for other ebook stores that have mobile friendly access.
4. You can use Memory Stick cards up to 2gb in size.
5. It has all the PDA features I might need and now cannot live w/o.
6. Supports pretty much all the current reader software written for up to Palm OS 5.0
7. It does have built-in voice recording so if that is handy for you it's a nice bonus.
8. Built-in video/still camera though it's just VGA.
9. Instant start-up.
10. Opens last app used when powered on. If it is your reader software then as long as your reader remembers where you left off, it will open the book there. I run Plucker, eReader & Mobipocket and tend to like Mobipocket the best but really have not given eReader a chance.
11. It has a nice fast ARM 200mhz processor. Plenty of speed for movies or reading eBooks. Page turns are instantaneous, even from books on the memory stick.
Drawbacks:
1. It's abandonware...the Clie line is no longer made/supported by Sony.
2. It has some significant compatibility issues in the multi-media area but I can play DIVX movies using TCPMP from a memory stick just fine.
3. It can still be kinda spendy @ $100-$150+ used on eBay.
4. For the most part unless the application supports screen rotation a 3rd party util is needed. And it is annoyingly expensive at about $20.
5. battery changes are a chore but not that bad.
6. Impossible to get a JAVA runtime for it so Opera Mini is out and Netfront Browser is, eh, not so much...holding out hope for Universe web browser which even the buggy beta is amazingly like a desktop browser.
You can also look into the nx80v which has wifi built in and a better built-in camera (both of which are really not too important really.) And I believe the battery is more user replaceable friendly. But it typically still goes for over $200 on eBay...I know, kinda weird.
I can say I have come to really LIKE the wireless ability. And now use it for far more then just book reading. I use it as a remote control of sorts. It has a simple built-in for TV, Stereo & other devices. But I also use PalmVNC to connect to my home media center PC I built. I now can spend 10-minutes (not really but some days...????!!!!!) to setup a new video that if I was not to lazy to walk across the room would take 10-sec...but it's the FUN of it all.

But seriously I was looking for a first ebook device and almost ready to pop for the Kindle when it came out then I found this baby at a steal. I am completely thrilled with it as a reader foremost and then all the other things I use it for as there are some GREAT freeware apps out there for it.
I am reluctant to pull the trigger on a dedicated reader even though, much to my surprise, I am in an EVDO RevA area and actually now have the service for my laptop through Millenicom w/o a long term contract. Things that stop me though are numerous. But, mostly I find the cost of most readers unacceptable for such a limited device. I like the Cybook Gen3 and the Kindle the most. But, lust for an Iliad with a usb port so I can connect my EVDO modem to it and have access.
Sorry for sorta rambling but that has been my process and thoughts since I began with the antique Clie from 2004(3??).
If I was in the market I would look at the Nokia N800/N810 though their OS2008 seems to still be evolving. And also like the potential of the new HP iPaq 110/220 series PDA's. I really like the Nokia though...and the N800 can be had for under $200, new if you find the right auction or online source. But I have no clue about the one handed operation of any of those three series of devices.