Kobo sounds right for you. The H2O probably as it's water-proof. The Kobo's need a bit of pactching to display epubs right but once its done it's okay. Fonts are very good on it. Dictionary is apparently not as good as a Kindle (or a Sony).
You could probably also get a new T2 or T3 on ebay. I wouldn't bother with a T1 unless it's dirt cheap. IMO the sonys are better than the Kobos, though they have no front-light.
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