I've been happily reading on PDAs and smartphones for 7 years. The hardware isn't as important as the SOFTWARE. Stanza and eReader have provided device-agnostic, fabulous reading experiences for nearly a decade. I still can't figure out why the Big e-Ink hardware sellers haven't learned from them.
Having tested a Nook, Kindle and 2 Sony devices in the last 6 weeks, they all have a way to go to provide the customizable e-reading experience I've come to expect. The e-Ink screen is really their only strength.
So if you could get B&N to license eReader, or Amazon to license Stanza (yeah, right), you might have a fighting chance with a palm/pocket size e-Ink device. But if the idea is to foist the same half-baked firmwares that the e-Ink market relies on, don't bother.
And I loathe auto-scroll.