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I was kind of in the same boat. I really liked my Dell Axim, just wanted a bigger screen. I did search around for months looking at different UMPC, mini pcs....everything. Pocket pcs do not come any bigger than a 4 inch screen. I wish the eee pc had a swivel screen and control pad on the screen. The only one that came close was the model from japan a Kohjinsha but battery life still not great on it.
In the end I got the HTC Advantage (Athena). It runs windows mobile, which my Axim was running too, though the Axim had an earlier version. But it was a familiar platform for me. I use mobipocket, I prefer to use the one program for reading books as it is just easier and I have found it the best for my needs. But I am not locked into it if I need to change in future. I love the 5 inch screen.
It does a lot of other stuff and of cause is more expensive than a dedicated ebook device.
I wish dedicated ebook readers manufacturers would get it in their head that e-ink isn't the be all and end all. They should release some models with lcd backlit especially now there is transflective lcd screens that are supposed to be good in direct sunlight.
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