Hi Robert
I like lots of the suggestions listed above, but here's the ones that most push my buttons.
Use a high quality case - make it feel solid, make sure it protects against twisting and wracking of screen. Pay attention to the design of the screen mounting, so that it is tolerant of moderate error of assembly. I think the current designs of screen mounts may be touchy about exactly how the screen is mounted, which would explain a lot of complaints about "mysteriously breaking screens".
Use a Rotationally equal case (like ebookwise or it's previous Rocket versions)- Be able to rotate display 180 degrees in either direction. This lets you change button placement to satisfy either hand.
Strongly consider a flexible screen, not to make the size of the device variable, but to make the device more robust. If you can make the screen tolerant of moderate impact and scraping, then the device will have many fewer breaking problems. I like a previous poster's suggestion of mounting threads to the case so that the device could be attached to any cover. Same idea as the threads on cameras that allow installing any tripod. (holes on the corners would work but are less elegant.)
Like others have said, put some work into the file system. It should be easy to move books around to different folders, and it should be easy to arrange book hierarchy so that you can find different categories or styles or authors or whatever criteria you want. I'm not fond of PDF, but if you support that format, truly support all it's features.
If you make it easy for users to access the OS and load new/additional software, the community will provide improvements. If you can make it possible to personalize the button functions, you will attract many hackers and modifiers. I don't like the current Gen3 button that has the menu button in the middle of the 4-way page forward/back/up/down rocker. If I could disable it's function during normal reading, I would. I really liked my Rocket, which had page up and down buttons clearly separated from any other functions - in fact, all other functions used the touchscreen.
I would trade some moderate weight increase for large increases in battery life. In fact, a moderate bulge can make the device easier to hold. Both the Kindle and the Rocket/Ebookwise series have asymmetrical shapes, and they are easy to hold. At the very least, try to allow for 2 or 4 of the current batteries to be installed in the case, but think about differently shaped batteries. And try to make the battery charging system not interfere with operation. The Cybook currently does not allow reading while the battery charges, but my old Rocket did.
I'm not really concerned with wireless connectivity, but if you have it, USE IT. Make the OS recognize wireless keyboards, which makes library organization much easier.
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