You can't comfortably use it with one hand, and unlike larger tablets like iPads, it's not that easy to hold it with two hands, either. Which, all in all, makes it a little awkward to handle.
The ambient light sensor is garbage and has never worked right for me. I've disabled it.
The way the device is built, there's a small space where the bezel meets the back cover, where dust and crumbs can and will enter. A bizarre oversight from a company who usually designs great-looking hardware.
The screen is slightly fuzzy compared to Kobo's devices with IR sensors like the H2O.
The battery life is noticeably shorter than previous Kobo devices.
It's relatively expensive.
The blue button is ugly.
Note: these are all nitpicks and I think it's a very good eReader, easily one of the best.
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