Hmmm, lots of nice ideas. Gives a fellow a good feeling (like the various fantasies that you have when you buy a lottery ticket). And as ideas said:
6-11 inch screen (different models, different needs)
memory slot
open source (or at least an actual developers kit)
folders
on/off wifi
Basically the same as others. Except a perfect reader in my opinion would have a few things not mentioned here and not strictly reader related.
1) a secure ID chip on the hardware and
2) a server program for computers.
First let's look at the second. (Yea, yea, I could have renumbered them but I'd rather type out an entire sentence commenting that I am too lazy.) A server program (combined with the wifi) would let the reader and computer interface thus treating the entire power and storage of the more flexible desktop as an extension of the reader. With a properly designed program you could follow blogs, get your news, buy your books (yes, I know, just like the Kindle) as well as browse through all the books sitting in your nicely categorized library. Yes, it would need to be a library organizer as well as a server. Something unthinkable a few years back but now so simple to make. Especially if every downloaded book had its ISBN number in the metadata (if it has one. If no number, just imports the metadata). Imagine easily browsing through your entire collection by cover, author, date, whatever and either using your reader to feed as your read straight from the computer or transferring over the entire book, section or article for later use.
Second, the first. (sigh, really, I had a english teacher in school. They learned me good!) A secure ID chip. Something that is an accepted form of identification for that unit by all (not just a mobi, ereader or kindle number). Why? To ease the panicky jumping and skittish behavior of publishers and help bring libraries and ereaders together. Libraries still have to pay for books and have to keep track of how many times each went out. A secure chip would let libraries (or even businesses with time sensitive data) lend out the book to a particular reader for a certain time while the publishers can take comfort in knowing that the lent books is a single lend and not copied, transferred or enjoyed by anyone but the person it was lent to. So libraries connect to more of the community while publishers can still get their accountability (and if they work a smart deal, automatic weekly feedback on what books are being lent out so they can adjust marketing as well).
I guess for me the reader is more than just about the hardware. It's the implementation of everything else that makes it useful. As long as I have a clear screen that's easy to read from, everything else can be built around it. Well, it could if they would let it.
Now excuse my while I daydream about browsing though my entire library from the couch between book buying binges at any online store.
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