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I think Sony PRS T1 could do it and probably the T2 can do it as well. But it was never a feature very appealing to me: reflow relies on the quality of the layer of text behind the PDF image. In scanned documents that layer of text is frequently full of errors and inaccuracies, and sometimes is simply missing (in this case no reflow, highlight or annotation is possible). Headers, footnotes, etc. are elements not easily managed with reflow...
Reflow is useful for large documents (A4 or any other format in which text lines contain more that 15 words or so), but for pdf books landscape orientation has worked well enough for me on my Kindle Keyboard.
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