I personally think there is little reason to root an eInk reader because they are not very good at much more than reading books. Maybe some RSS feeds, or some static games like sudoku, but little more. I use mine exclusively for reading.
To answer one of your questions, you can't alter the partitions to give more space to the sideloaded books section, that would require a formatting of the eMMC and repartitioning, plus re-installation of the software. But as the previous poster said, with SD card costing so little (I saw Amazon selling 16GB for $22 yesterday), it's not a problem.
If you want to root, check the auto-nooter, it's the simplest and safest way to do it.
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