I'd like to have a larger form factor iPod touch for this usage scenario...
The battle over e-readers is heating up rapidly, thanks to new hardware entries from the world's two leading e-book manufacturers and the surprising popularity of e-book software on Apple's iPhone and iPod touch. Although the total number of e-books is still well short of a single Steven King press run, the next-generation devices point to a steadily maturing market for digital literature.
When it released the iPhone and the iPod touch, Apple did not set out to create an e-reader. But with the opening of its Apps Store, the devices have developed a growing number of e-reader fans. By most estimates, downloads of e-reader software vastly exceed the number of e-book readers sold by Amazon and Sony combined.