I can't part with my iPhone. I have a Sony Reader but I almost always read with my iPhone (same screen as the iPod touch), which is always with me. Plus, it's really great to check out and try the many apps in the App Store -- for the times when I'm not reading.
My main problem actually is which ebook reader to stick with: eReader or Stanza. Both of which are continually updated and just gets better.
Good luck!
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