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I think I see it a bit like Wizwor, but it may also be because of my definition of "basic". For me, a basic e-reader uses e-ink and has wifi connectivity (the books have to somehow get on the device, otherwise it requires an additional computer rather than just a public hotspot). I think 4" would probably be sufficient, something like the Trekstor Pyrus mini that Katsunami had mentioned (although it does not have wifi). It uses some e-ink knockoff called Digital Ink, which seems to be much less costly. An e-ink device, or Digital Ink, would also substantially increase the battery life. $50 would certainly be feasible, but then you could get a backlit device with a slightly larger display for "just a bit more".
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