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I bought it primarily to read "books" (fiction or non-fiction, but not work-related). Great success here, especially with the Mobipocket release. Unfortunately only fiction so far, but hopefully my favorite non-fiction authors will soon be publishing digitally as well.
I also hoped that I could be useful for documents, and it is: I usually bring 10-100 pages of documents to meetings, now I don't have to print them out every time (I throw away paper as often as possible). I also use the meeting agendas to take notes. This means that I can actually find my notes when I need them some weeks later (a new experience for me...).
I was also hoping to use it to read newspapers and listen to music/audiobooks, but so far I don't consider it useful enough. This is just because I don't have enough time/energy to download/modify/configure the various applications that I need, and set up scripts to download web pages that I'm interested in etc. If I could get the iLiad to download a selection of newspapers/comics automatically whenever I press the "connect"-button (or something else) in a very user-friendly way, I would use it for that as well (at least when I'm traveling or away from home). Hopefully I will get the inspiration and set it up - it isn't really hard just cumbersome.
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