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My perfect eReader would be a larger (5-7" screen) PDA type device running some version of Windows (i.e. Mobile, CE, etc.), but with longer battery life and eInk-like clarity (UMPC's failed on those last two plus price).
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You should have a look at the smartQ7.
https://www.mobileread.com/forums/sho...hlight=smartQ7
Or wait for similar devices from more mainstream manufacturers (Toshiba have something similar on the way :
http://jkontherun.com/2009/09/03/tos...let-prototype/)
None of these have e-ink screen though. The only e-ink reader running CE was a korean reader long forgotten and it was quite buggy as the display driver was not optimised for e-ink.
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Plus, I have HUNDREDS of ebooks in LIT format
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Lit is one of the easiest format to convert to something else. You should also consider choosing a Sony reader or an Astak for example, then converting your library to a compatible format.