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I think the battery life is fine, but I plug my phone in every day at work (when I am at work) and when the phone is not in use so I've not had any battery issues. It's obviously not the same as an eink device but I definitely think it is comparable to my IPAQ 4700. It's a slightly smaller screen size (the IPAQ was 4" and the iPhone is 3.5") but the size difference seems negligible.
The books.app is pretty smooth. It has a black and white background, three fonts (Helvetica, Georgia, Times New Roman), and any size that you wish. The pages advance by either dragging your finger or tapping at the bottom or the top.
It advances to the next html file so if your book is cut into individual htmls, it's a pretty smooth read. I'm actually going to be reviewing and posting screen shots of this on Sunday, my regular ebook day.
For daytime reading, the Sony Reader is probably the best, but I enjoy this for nighttime reading and inevitably that is when I read the most.
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