I know it's not an Android device, but have you considered the iPad Mini? 7.9" screen, 128GB storage and a 2048x1536 pixel screen? Lots of good reading apps available, and you can run Calibre Companion on it. To my mind it's one of the best small tablets available. I don't know why, but it seems to be difficult to buy an Android tablet with more than 64GB storage.
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