Get the kindle app for your iphone and see if the ebook selection works for you. You can also read your purchases on a PC a Mac and iPad and of course a Kindle2 and Kindle DX... if you ever decide you want a dedicated device.
Also, 95% of the Kindle books are easy to liberate if you decide you want to get a non-kindle dedicated reader in the future. (Although my reco is to not buy more books then you can read. Chances are when you get a new device you wont have to liberate tons of books cause you already read them.)
BOb
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