I got myself the Sony Reader after Christmas, and I gotta say I love it. I can take books anywhere and read whichever one I choose. It's thin, lightweight, adjustable for font size, and can also store photos (black and white) and audiobooks. It can also convert file formats and allow you to enter the book's title, author, etc. I recommend Calibre for that, since the program doesn't have the glitches that Sony's bundled software seems to have, at least for the PRS-505 model.
The technology isn't there yet to display photos in color, but I bet it's not far off. Just my mini-brag today about how cool this little critter is. Check one out if you get the chance!
On a side note, have a safe, happy and prosperous New Year 2009! I hope you have all made your writing resolutions!