Why keep all the books on the machine? Because I can? Because I like choices? All of the above?
I bought the Sony to take on vacation. I also read very fast, so that while it can take me days or even a week or two to read a "serious" book (like "This Time is Different" about economic history) or a really long one (A Dance with Dragons), I can also read a light novel in a few hours. My interests vary widely, and I like not having to choose what I think I'm going to want to read over a ten or fourteen day period if I know I'll have the luxury of being able to read several hours of day without interruption.
No offense to those who prefer to keep only a few on board and the rest on the hard drive - these are just my reasons and YMMV. Either way, the decision on how many books to keep on any given reader should be a matter of personal preference, not software issues.
Just my two cents and I hope this helps. I don't mind answering the curious, and I appreciate the info from the helpful. This is a great resource with great folks. Peace.