Go for a real ereader
I've used a Palm M130, A Tungsten T3, and a Nokia N800. All very usable, but not for extended periods. An hour here and there is fine, but if like me, you like to curl up with a good book for 3-4 hours at a time, then not so good. The battery life is not really long enough for long term reading, and the screen even on the N800 is still quite small.
I got a Cybook reader last week, and I'm delighted with it. Only had to recharge once after a week of heavy reading, and the screen quality has to be seen to be believed. And best of all, no watering eyes after staring at a little backlit screen.
The Cybook is my first and only experience of the eink technology, but if the Sony and others are the same, then the difference justifies buying a dedicated reader.
Things like searching and better PDF support are on my wish-list, but by the time I'm ready for my next reader, they might be commonplace.
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