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I use both. When I'm home (or out someplace where I know I'll have a lot of time to read) I use a dedicated reader. When I'm running errands and might have just a few minutes to read while waiting somewhere I use my iPod Touch. For most circumstances I prefer the single-use devices (ebook reader, mp3 player, camera, etc.) but there are times when it's nice to have them all available without carting around several pounds of electronic equipment. For those times I have the option of carrying just my phone and my Touch. The functionality may not be as extensive and the quality not quite as good, but sometimes I'm willing to sacrifice a bit of quality for a little extra convenience.
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