Try the Kindle DX or other readers that utilize a 9.7" e-ink screen. Kindle 3's problems with handling PDFs, IMHO, have more to do with the size of the screen than the software, although all I do is read them (I don't annotate them or use other features). Kindle software natively reads PDFs, so there will be no need to convert them. I'd advise looking for youtube videos of the Kindle DX reading PDFs, so you can see whether it's good enough for your purposes.
Kindle software can't reflow PDFs, however, although it does read .mobi without any need for conversion.
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