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Personally I'd just use a smartphone, iPod Touch or something.
But I think there's a little room at the bottom for a smaller eink device than exists now, maybe not shrinking the screen so much but the rest of it - so it would be comfortable to hold in one hand with thumb on one edge and fingers on the other. E.g. take the 5" screen of Sony Pocket edition and shrink the case down as much as possible (say a 1/4" bezel). 4 buttons along the edge your fingers rest on for navigation, configurable for left or right-handedness (matching current orientation or manually set). Sell it for $120 or so...
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