I got an iPod touch 8GB as entry to the IOS and still use it now and then.
Of course, the iPad is a lot better for games and reading, so my kids and myself are now using that mostly (and I use the Kindle Fire for reading mainly because it is more portable)
Maybe the upcoming (Q3 2012) iPad mini with 7" screen might make sense ... large enough for reading, while still portable, allowing you to use all the iOS apps.
Best regards,
Andy
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