I've used Sony eReaders and Kindles 1 & 2 through the libraries I've worked for and wasn't really sold on eReaders, personally, but I understood why people would be, especially for lots of traveling.
But things have been changing ... I would still rather read a physical book, but I would love to be able to read fanfic on a device. So, I thought about the Nook Color (I can't justify spending triple digits on a device that can only read books), but it's out of my budget.
So, I found a $160 7'inch tablet and am loving it. Cheaper than a lot of eReaders, with more functionality, and I can read all sorts of eBooks and fan fiction on it. I might wind up bringing it to classes, since it's lighter than my laptop and shares similar battery life, but probably not - I can't imagine taking notes on it!
I prefer the little, cheaper tablet to the eReaders I've tried - except eInk is easier on the eyes and readable in outdoor light. But, as others have pointed out, you don't need a lamp to read a tablet screen.
eReaders = better battery life, easier daylight reading
tablets = flexibility and multifunctionality
I think each will have their place for years to come. If tablets could do eInk and LCD screens and eReader battery life, I think that would be a great feat and goldmine, but we're not there yet.
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