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I prefer do almost all of my long form reading on my Kindle. For PDFs and technical docs, my Xoom is much better, both because there is more screen to work with, and navigation is more fluid.
That said, eink screens have not improved for 2 years. I hoped some device other than iRiver HD would come out with a 1024x768 screen, but that has not happened. Development of 300dpi eink screens was announced over a year ago (EInk/Epson partnership). I think additional resolution would help: I notice that on my Kindle, embedded fonts don't look so great at the smaller text sizes I use, as they have not been tweaked like the built-in fonts (which on Kindle are essentially demi-bold rather than regular). But the standard 800x600 6" screen enjoys such economies of scale that other configurations might be prohibitively expensive to produce at this point, with 7" LCD tablets diving below $150.
And of course if there were any way to make the whites whiter and the blacks blacker...
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