The roller thingie is more like a scroll wheel than the ThinkPad eraser mouse thingie. While I'm a huge fan of the Kindle, if money is tight it might be worth waiting a bit. If you want native Mobipocket support then if Astak follows through on its LiteBook on the 5" reader and manages to hit the $159 price projection, that might work well for you.
I'm not sure what formats are most common for romance novels. You may want to check that out before making a hardware decision. As for library ebooks, some libraries do have them. My local library uses a service called Overdrive. They have ebooks in DRM-ed .mobi and .pdf. Sadly there are a lot more titles in .pdf. The books time out after 3 weeks. (Hopefully if Astak does .mobi support, they'll be mindful of this when it comes to clock settings. The original release of the Cybook Gen3 wasn't, but I think that's resolved now. ) The selection isn't great, at least at my library. You may want to check out your local public library's website and see what they offer.
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