I just got a 3G S, replacing an HTC wm 6.1 phone. I love the iPhone, it has a much better screen than my HTC, and much, much better UI than WM 6.1 (and after trying WM 6.5, I have given up on WM for the foreseeable future.)
Having said this, the Kindle DX is much closer to reading a book, than any LCD mobile device I've come across. e-Ink is just way better, and not just for size.
So, while I love the iPhone 3G s as a smart phone, for long-term reading, the e-ink devices win hands down.
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