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Either device should work fine as an ebook reader. In addition to the other eReading software already mentioned, you'll also be able to read PDF files.
If you get the device with wifi and bluetooth, you'll be able to do quite a bit more with the device:
Connect to internet to surf websites, review email, download books, read forum posts, etc.
Listen to music via a bluetooth headset
Connect to a bluetooth enabled cellphone and surf the internet through the phone's data connection (you'll want to subscribe to a data plan if you plan to do this).
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