Hi. I use iSilo exclusively for reading ebooks on my iPhone. It took me a while to get the hang of it because it is so customisable and has a few quirks, however I've got it set up exactly as I like. iSiloX, which is used to convert files into the isilo format is also excellent.
I started off using it directly with html and txt files, however it works much better with the isilo pdb files. Searching within books is VERY fast. Much faster than with the other ebook readers that I've tried - in fact I think this is one of the main reasons I like this reader.
It offers multiple ways to get ebooks onto the device, including running its own webdav (I think thats the term) which means you can map the iphone as a network drive and access folders on it. You can also download files from a web server.
iSiloX also enables you to download websites as isilo files. I am getting into astronomy so downloaded the whole messier catalogue including pictures from a web site, loaded the resulting pdb file into isilo on my iphone, and can quickly and easily access the info.
A big feature that it is missing, however, is the ability to purchase books directly from an ebook store.
And no, I don't work for iSilo - I just really like the software.
And by the way, I'm intending on moving to an HTC hero (an android phone). I'm pretty sure that isilo is available for android as well