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I can read on an LCD for several hours without eyestrain, but I prefer e-ink. For many years I was using the Rocket/RCA/Gemstar books - I loved the backlit screens, especially for reading at night, not to mention the ergonomics of the 1150.
When it comes to the iPad and reading, in my opinion, it's strengths are for colour illustrated books, and night reading. My only reservation with night reading is the size and weight. I own an REB1200 and GEM2150, the larger colour ebook readers, and found they were just to big and heavy to hold comfortably in bed. I preferred the grayscale and lightweight 1150.
Doesn't mean I not getting an iPad (picking one up in California next month!), but I doubt it will usurp my PRS505 anytime soon.
Edited to Add: Forgot the other strenght of the iPad vis-a-vis reading: Magazines! I'm going to be getting SO much more use out of my Zinio subscriptions.
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