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For me, resolution doesn't have as much to do with ease of reading as the type of display. A purely reflective display is far easier on my eyes than staring into a glowing, constantly-refreshing box for hours at a time. I've read a couple of books on my AlphaSmart Dana (has an older Palm-type display) and it's much easier on my eyes in the long term than my bright, high-res LCD monitor. (This is only true when I have good ambient light... otherwise the Dana display is a bit murky.)
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