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I agree with Bill. The main reason for my purchase of the iPod touch was that I got tired of carrying around so many different devices. The iTouch has transformed everything for me! I love it. I am reading so much more because my books are so accessibleand it is so easy to get new ones---don't even need to get on the computer for it!
I got used to the small screen. But I would not mind a bigger one. I think my ideal ebook device would be a slightly bigger iPod Touch---the iTablet? Some sort of marriage between the OLPC and the iPod, maybe---energy-efficient mini-pc with a tablet mode and with eReader running on the iTouch platform?
I think most people won't want to buy a separate device, especially if they continue to cost so much. And most people don't want so much stuff to carry around.
And don't forget, the Kindle right now is US-only, which already inhibits it from being really a major player...
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