Really appreciate your thoughtful response, Jack.
I find it interesting that as a Kindle owner, you don't recommend the Kindle. I occasionally read the Amazon forums, and usually any criticism of the Kindle is quickly blasted by others there.
Sounds like the ideal would be a Sony reader married to the Kindle store.
In the future, I wonder if Sony will be able to implement a dictionary on a non-touch screen reader such as the PRS-300. Or develop a touchscreen that does not come at the expense of screen clarity. I also wonder whether customization of fonts would help significantly the legibility of the type.
At some point, I'll have to swing by the Apple store to check out the iphone/ipod touch to see how my eyes perceive the text sharpness and contrast.
I agree with you that a Sony iPhone app would be nice, making it even more of a multi-format device. There have been a slew of articles recently on how the ebook market will expand primarily through PDAs/smartphones rather than dedicated ebook devices.
Like LDBoblo, I do hope the e-ink technology improves over time, or that another technology is developed that surpasses the quality of e-ink for future ebook readers.