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I do some of my reading on an iPod in GoodReader. It's primarily a PDF reader but handle plain text files as well. It has a scrolling view for text where you press play and the text unrolls for you. Between adjusting the text speed and font size I can usually find something that works for a given book. You can still swipe w/o stopping scrolling so it isn't all or nothing if you need to back up on a paragraph. Can mean a lot of plain text conversions but not so bad w/ bulk conversion.
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