I have an Eee PC 901 running Windows XP. It's got the 8.9" screen (mostly fine), and the little keyboard with the tiny rt-shift key (drives me nuts) and 12 gb of storage divided between a 4gb and an 8gb SSD. I supplement the SSDs with an 8gb SDHC cd. I've had my netbook for about 8 months now.
I do read ebooks on mine. I have eReader desktop and Mobipocket desktop readers on it, and like both. When I want to knit and read at the same time, I just set the font size and spacing large enough to read easily, turn on the autoscroll, and zoom away. I tried the Sony desktop reader and HATED it.
If I were going to buy a netbook today, I'd get one with a 10" screen and a slightly larger keyboard. The larger screen would cut down on some of the scrolling you have to do, and the larger keyboard would cut down on the aggravation of finding that you've hit the up arrow AGAIN, instead of the shift key. It would also be nice to have a little more onboard disk storage. I'd have a few more applications on here if I did.
This is the first laptop I've owned, and in spite of its quirks and foibles, I adore it. It's by little bebeh 'puter.