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I almost always prefer single-purpose devices. My cell phone is a cell phone, my camera is a camera, I play music on an MP3 player that's only an MP3 player, and I read on an ereader.
My wife has an Ipad and she does use it for reading, but most of the time it's for email and videos. She doesn't read as much as I do.
I suspect there will always be a market for small (think mass market paperback sized) dedicated ereaders, especially if the price is low.
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