The best screen in my opinion is the Sony 505. The Kindle is very close, but their choice of font is terrible. There are a few fonts that can be added, but only one at a time. Also the Kindle reader does not format books as well as the Sonys. But that is a software issue.

As far as recommendations go, it all depends on your specific use and needs. I really love my 505, but I wanted a dictionary lookup feature and I wanted the touchscreen so I could highlight text and make notes. The Amazon tried to address those needs with the Kindle 2, but in my opinion the keyboard is terrible and the navigation controller is slow and difficult to use. Quite frankly, the only reason I have a Kindle 2 is because there are many more books available in the specific categories I like. The 505 and 600 are of much better build quality and have smaller, better built cases. I guess if you just want to read novels and don't need or want dictionary lookup or highlighting, I suggest the 505. The 300 might be great too, but I haven't seen one yet. If you need or want dictionary lookup or highlighting, I suggest the 600. I do NOT recommend the Kindle 2.

I spent over a decade using various PalmOS and Windows Mobile PDAs to read eBooks. In the PDA class of readers, the iPod touch/iPhone is the best I've used. The small screen is really not that big of a factor. The only real problem is that PDAs and the iPod touch/iPhone discharge their batteries very quickly--usually within a few hours. The one thing that really spoilt me with PDAs is that you are not locked into a proprietary format. On the Palms and Windows Mobile PDAs you can install reader software for most any format available. For example, there is a MobiPocket Reader, a reader for eReader format, a reader for Microsoft Lit format, etc. It was always so great to have that multi-format capability on my PDA. The touch/iPhone might be a bit more limited in formats. Another great thing about the reader software for PDAs is that you could select not only font sizes but choose from several available fonts, font colors, background colors, change the margin sizes, etc. The customization options were terrific. I really don't understand why Sony and Amazon don't give us more customization options, especially fonts. The main downside to using the iPod touch/iPhone (or any other PDA) is that it is uncomfortable to hold such a small device for an extended period. They are one-hand devices. The Sonys and Kindles are more book-like in size and lend themselves to a much better, more natural holding/reading experience, and their screens are better for extended reading periods. Plus some books are just not redable on a tiny screen. For example, books with lots of photos, images, drawings, tables, etc.

So I guess what I'm saying is that for short reading periods the PDAs are okay and the small device is great for doctor office visits and such as they will easily fit into your shirt pocket or belt holster. But for 90% of my reading I prefer the Sonys. I wish Sony would release an iPhone app like Amazon did for the Kindle.