Personally I think what you described is a rooted Nook Simple Touch. Granted it has internal memory (and a light if you want) and good reading softare, but you can root it to make it what you want.
But to be honest what I think is the best e-reader is my Nook Classic. It did have a few short commings in the library orginzation aspect. But if you root it and add the nookdevs library app, all of those problems go poof. You have E-ink on the top and color screen for covers etc on the bottom. Swipe to changes pages or click the buttons on either side. As I said, to me it is the best E-reader (well once it is rooted).
The only downside is the lack of any development. Everyone has went on to newer full android tablets or the Nook Simple Touch (which is easier to develop for since there is only one screen). I wish I could find someone to fix one little glitch I found in the Nookdevs Library App (it doesn't show the description tag in the epub file like it should, it shows everything else but). But ah well I can live with that.
