Great review. I agree with everything that you've mentioned.
Just responding to a few points you made:
5) Another thing about reading off an SD card is that the Story doesn't remember your last font size setting. Not good.
6) Well, you really shouldn't turn the thing off.
7) What you could do is to always sort the books based on date. The last read books will find their ways to the top of the list. Or use the favorite feature. Just tap on the space bar when you're at the book-title menu.