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Personally, I find the iPad's ppi a little too low for comfortable reading. I prefer my iPhone, even with its smaller screen (163ppi vs. 132ppi, for comparison a 6" eInk display is 167ppi).
Still, if you must use an iPad as an ereader, there are better options than iBooks. The iBooks reader is too busy, with the non-interactive page stacks on the side (seriously, why don't those show your progress through a book? It's a pretty trivial calculation, but as of right now that's just eye candy). Kindle on iPad is better in terms of presentation, getting all of the annoying stuff out of your way so you can just read. But the best is Stanza, which just released version 3.0 with full iPad support.
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