[pl001]

I prefer reading on e-ink because it looks more like a real book. But in imperfect lighting conditions the contrast is poor because the screen does not reflect nearly as much light as paper. LCD has much better contrast in most indoor lighting conditions. However when in bright light or outdoors LCD's contrast is much worse. It also doesn't feel as natural due to some of the reasons jocampo has detailed. But that doesn't necessarily equate to readability.

If I had to pick just one device, it would be the Nook Color, really no comparison for me because because it is so much more versatile.