I tried using my iPod Touch as a reading device with iBooks and Stanza. The problem with that is that blacks are never blacks as they are always backlit black pixels. So no matter how you invert the colors, in pitch black you still have backlit LCD display. And if you turn down the intensity of backlight to a point where it doesn't bother me, the contrast is so poor that I rather not read at all.
The backlit black pixels, in my eyes, hurt more in pitch black room than using an external lamp to read my e-ink device.
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