It's not often that The New Yorker does the gadget review. But here we have one -- Nicholson Baker breaking down the Kindle. The upshot? He's not a big fan. Why? Let me give you some of the money quotes. And also note the iPhone/iPod Touch recommendations at the end (where I added some useful links):
"The problem was not that the screen was in black-and-white; if it had really been black-and-white, that would have been fine. The problem was that the screen was gray. And it wasn’t just gray; it was a greenish, sickly gray. A postmortem gray. The resizable typeface, Monotype Caecilia, appeared as a darker gray. Dark gray on paler greenish gray was the palette of the Amazon Kindle [DC note: This is why I returned my Kindle]."
"Despite its smoother design, the Kindle 2 is, some say, harder to read than the Kindle 1. “I immediately noticed that the contrast was worse on the K2 than on my K1,” a reviewer named T. Ford wrote. One Kindler, Elizabeth Glass, began an online petition, asking Amazon to fix the contrast. “Like reading a wet newspaper,” according to petition-signer Louise Potter."
"Amazon, with its listmania lists and its sometimes inspired recommendations and its innumerable fascinating reviews, is very good at selling things. It isn’t so good, to date anyway, at making things. But, fortunately, if you want to read electronic books there’s another way to go. Here’s what you do. Buy an iPod Touch (it costs seventy dollars less than the Kindle 2, even after the Kindle’s price was recently cut), or buy an iPhone, and load the free “Kindle for iPod” application onto it."
"There are other ways to read books on the iPod, too. My favorite is the Eucalyptus application, by a Scottish software developer named James Montgomerie: for $9.99, you get more than twenty thousand public-domain books whose pages turn with a voluptuous grace. There’s also the Iceberg Reader, by ScrollMotion, with fixed page numbers, and a very popular app called Stanza. In Stanza, you can choose the colors of the words and of the page, and you can adjust the brightness with a vertical thumb swipe as you read... Forty million iPod Touches and iPhones are in circulation, and most people aren’t reading books on them. But some are. The nice thing about this machine is (a) it’s beautiful, and (b) it’s not imitating anything. It’s not trying to be ink on paper. It serves a night-reading need, which the lightless Kindle doesn’t."