I've had a Cybook for well over a year (bought it in January 2008) and I carry it pretty much everywhere. I even took it to the baseball game last Tuesday.
Not that I read it at the ballpark--I brought it so I could read it on the train to and from. I just have the regular padded case it came with--the older brown pleather one. It's been on three plane trips so far. It comes to work with me daily on a train commute, and attracts no undue share of attention I may add.
My point is, use and enjoy.
But I wouldn't mind a sub-$200 reader, either, preferably one with a 5" E Ink screen, to be even more portable. I don't think I really want to go any smaller, though. The Hanlin one that BeBook would most likely be using sounds really promising. Like I said, the Cybook attracts attention, and I have my ebook spiel down pat, but when people hear the price, 9 out of 10 recoil in horror. It will take a sub-$200 device (better yet, a $99 device) to really draw wide adoption, I think, like the original iPod Nano and Shuffle.
ETA and off-topic: toomanybooks, I want to snorgle your puppy's belly!!!! It's so cute!