The hardware is "good enough", although I agree completely about the cover, the right hand page levers, and the on/off switches.
What is needed is improved software:
- Multiple fonts
- Smaller (or adjustable) line spacing
- Folders
- DRMed MobiPocket support
- Search a single e-book
I would wait for a larger screen before upgrading the hardware. On a device with an 8" or 9" screen, I would add a PDF reader with the ability to add notes and search etcetera (even though it would not "reflow" the file for display).