I find the ipod touch screen a little too small at time for reading long ebooks (hence my decision to grab a kindle as well). I can handle reading for 20 minutes on an ipod touch, but longer than that it becomes annoying.
By all accounts Apple will be releasing a 9.5" touchscreen device in June, which will probably operate like a large ipod touch!! That will probably blow every other device out of the water if they can price it below $600 USD.
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