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As one who has read huge novels on a Clie, I can see that an iPhone would be a perfectly good reader. The thing is, you can take it everywhere -- you don't have to lug a Kindle or an Iliad around. But why should one be limited to one kind of reader? The Iliad is the best for reading at home or when you can take it with you, but the iPhone would be a good stand-in when you don't have the Iliad (or the Kindle or the Sony Reader) with you.
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