I don't think I'd prefer to read ebooks on an iPad, but I imagine they'd be great for writing; both with the stylus and the virtual keyboard. I would prefer a fatter stylus, however, than the ones I've seen in the pictures and videos.
For reading, I'll take a device that's approximately 10 inches and utilizes e-ink any day of the week over a 1.5 lb. device with a backlit screen.
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