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I like the iPhone as a multi device, too. But ultimately, I don't want to read books on it - the screen is too small, and sitting around with the screen on forever drains the battery too fast.
Personally, I'd love to see something like the iPhone but about 3x it's size (screen about the size of Sony Reader/Kindle's). The trick is having a device that does the phone/ipod stuff but taking the controls and allowing you to use it without holding the device (headsets, etc.)
But as that isn't the case yet... eh. I just find reading anything on it very long to be unpleasant, and really don't want to see the market move in that direction at all. I also don't think I'm alone in this, and getting many people to want to read on a device like that isn't terribly likely. The eBook market, as something somewhat legitimate, is still fairly new and I'd hate to see it put its eggs in the wrong basket for long term success.
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