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Screen size (6 inch).
Easier on my eyes.
Battery life (and yes, as cromag mentioned, on both devices - I want my phone to be available for calls, if needed).
My dedicated readers have buttons, so I don't have to lift my hand off the reader to change the page.
I just gave a friend of mine a used 3G Kindle PW1 just this weekend. She doesn't have internet access at all and doesn't have a data plan on her phone. The 3G and the weight of the reader were the most important things for her (even if it means it locks her into the Amazon marketplace). She has a smaller-sized tablet (Samsung, maybe 6 or 7" screen) that she bought 3 years ago thinking she'd get internet, and she's never used it. She's complained since the first day that it's too heavy to read comfortably on (I sideloaded some books for her).
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