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Again, define tablet? In my lexicon a tablet is a computer. You can do (at least) basic computer tasks with that. So, text-editing, spreadsheets, some graphics, playing of multimedia content (music, video) and the ability to install applications.
A reader is a much simpler device, which is geared to make reading easier. So, limited functionality, only those functions that can make the life of a reader easier. A webbrowser can make the life a lot easier, as you can download your books from all webstores and other book sites. You will need some form of wireless connection for that, so either 3G and/or Wifi. Playing music can be be handy, if you like to listen to music while reading (I can't stand it, which is why I never use it). Playing movies will become more important as some people seem to thing that simple text based books aren't enough and books need to have sound, video and images to be interesting.
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