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The iPad will work, because it's meant to be as Leo Leporte says "A media consumption device" and as it being only that, and not a full fledged tablet PC, I think it will work.
I sold my Sony reader a while back on ebay (PRS 505) fortunately right before the pocket reader came out! I couldn't just have one device sit there and do just one thing.
Will the iPad be perfect? Doubtful, but it can grow! Who knows what the iPhone OS 4.0 will include? Some say true multitasking. (can you imagine running Nuance's Dragon Dictate and having it, say, input text directly into Pages? (Apple's version of MS Word) I plan to write my book on the iPad, I know it can be done, how easily remains to be seen.
My only hope is that I'll be able to transfer/translate my already owned books to the epub format using calibre, then throw them into itunes (that's how the iPad will sync and back up your books, as it does with music and movies) If it doesn't now it will eventually.
Just my 2 cents
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