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The good news: all the e-ink readers work fine for fanfic. And pretty much everyone who just likes *reading* loves whatever reader they get.
Kindle is a good choice for people who don't want to deal with the more technical aspects and just wants to read. For people who want to buy books from the various stores, the hassle of conversion (and possibly, cracking the DRM) can be a bigger consideration.
I'm not sure how well the Kindle manages collections, but unless you do lots of sorting and re-reading, it's not likely to matter.
I use an Astak Pocket EZ-Reader, which is now out of production but there are similar models available; it reads both mobi and epub without DRM (which would include any fanfic). I download a lot of fic from Archiveofourown because it's got an auto-ebook function, and for other fics, I tend to convert them to custom-sized PDFs, because I've been too lazy to sort out Calibre. I already knew how to make specialized PDFs when I got my reader.
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