This is actually one of the reasons I was looking into a kindle (ended up buying an ipod touch for now).Only thing holding me back now,besides not having had the time to actually figure out how to do it,is maybe either a) getting a kindle or b) getting a nook...although ultimately I think I love my sony for reading (esp for Overdrive libraries),and sometimes I just don't have the time or energy.
Me personally,I would pay more to be able to have something in the format of my choice (although ideally it would be nice if there were a standard and all this extra work weren't necessary !) I also don't see a problem with it being stripped for personal use ....
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