I Have both an iPhone and a Pocket Pro (Previously Gen 3) and I use both for reading. Its not an either / or situation for me, as I use almost all my devices for reading which also include a Nokia N800 and my Macbook.
Usually, I'll use my iPhone when I just want to catch a few minutes of quick reading or when I don't want to carry my reader along for an errand.
For longer reading session, i.e. longer than 20-30 minutes I definitely prefer eInk. I'll usually have different books ongoing in both to not have to worry about finding the last read point, which works out pretty well for me.
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