I find chapters very useful in books that include multiple story lines from different protagonists, because if I am rereading and don't want to follow all the story lines I can skip to the next chapter (if there is one chapter per story line). This works well using FBReader because it has a skip to next section (next TOC entry) key. Waymarks on the Kindle 2 probably work similarly. On the desktop an always displayed TOC could provide a similar capability provided it keeps track of where you are in the book.
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