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I agree with most of RWood's post with some shuffling, etc:
1. Ability to open other DRM formats like PDF and PDB
2. Support for basic formats such as DOC, HTML, RTF (with pictures), TXT, and PDF.
3. Replaceable battery or very long life battery.
4. USB interface and have it look like a USB device to the computer.
5. Organized storage -- no flat model only.
6. Ability to delete on board
7. SD card slot.
8. Sync with Desktop
9. Search
Nice to have
10. Dictionary (Palm like function)
11. Zoom
12. Touch screen
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