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I'm going to be jumped on by the mob, here, but I've never been convinced of the need for a dedicated device for e-book reading.
Since I started reading/buying e-books, I've used a PDA of one kind or another. The UMPCs fascinate me as well, and I expect to replace my laptop with a UMPC when it finally gives out. I like devices that serve multiple duties, and these devices are fine e-book readers for me.
Many people complain about the difficulty of reading on LCD screens. However, software like MS Cleartype allow LCD screens to adjust text to a more visually appealing "softness," and makes reading on LCD devices much more workable (there's a huge difference on my PDA). I expect there will be other, similar software advancements for newer LCD-based devices over time, making them more easily readable for users.
And don't forget the large number of Japanese that (according to mildly-challenged stats, at least) read e-books on their cellphones every day. E-books are coming along pretty well right now, despite the limited adoption of dedicated hardware devices.
Bottom line, it may be early for the dedicated readers, but not, I think, for non-dedicated/multi-use reader hardware.
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