I started reading e-books seriously on my Toshiba PDA. Recently I had the chance to test-drive a Sony PRS-505, and now, my e-book reader is... an iPaq 110.
I'm not saying the Sony was bad, but I like reading e-books on a PDA screen. I've never had an issue with the 320x240 size, and eyestrain has never been an issue for me. It's portable, the battery lasts as long as I'm reading, it's easy to change pages, I can read it in any light, and I can hold it in one hand. And since the iPaq is good for so many other tasks, I don't have a need for a dedicated reader at all.
I personally feel that everybody has different hardware needs, and people should use what they're comfortable with. In the long run, the hardware won't matter... it'll be the e-books that matter, whatever you read them on.
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