As others have stated I want an e-book reader. I don't need it to sub for a smart phone, web browser, camera, or MP3 player. Especially since these extra capabilities can only increase the bulk, weight, and cost.
For screen size I've been spoiled by my Daily Edition to want at 8-inch; wouldn't want smaller and larger would make the device to clumsy I think. I also now want the touch screen capability with ability to highlight text and add notes. I do miss the clarity of the Sony 505 e-link screen though. I'd actually be willing to pay for a dual screen device, two-color screen of Sony 505 quality, and a full color touch screen for books that have graphics that must be appreciated this way. The rub is I don't think I'd buy such a device until the price dropped to $400 or below.
Oh yeah, a biggie the ability to read about every format out there, but for sure PDF, HTML, RTF, EPUB, and MOBI.
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