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If screen size isn't an issue, I'd consider a Pocketbook 360.
5 inches size, very pocketable and easy to handle; it reads 99% of text-PDF's with no flaws, it has a microSD slot for further space and it doesn't add to the boot-up time; it works with folders: you can make as many as you like, and you can just drag-and-drop things like in a run-of-the-mill USB stick.
And to top things off, it seems to be in sale right now.
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