I love ebooks and read them almost exclusively. I'll even read an ebook that is free but waaaay out of my genre of choice before I'll consider a hardback from the library or a paperback.
This is a cheap tungsten pda ($40 on ebay). I have mobipocket loaded, it holds an sd card that can store hundreds of books. This is what I carry around in my purse--perfect for waiting in the car at night for a teenager to finish up a school activity because it has a backlight. Also has a car power cord so I can read without draining my power. I pop it into a ziplock for bath time reading--if it should drown it wouldn't be that tragic.
Next I have a little netbook. I use it for writing first drafts when I'm away from my Mac desktop. On the few occasions I've bought an e-magazine with pictures, this works the best--the pda is too small and the kindle is black and white.
Then there is the wunderbar Kindle with one click purchase power! If I want to relax in my living room with a book, this is what I pick--if I can wrest it from my husband who has about a dozen books loaded onto it. Because it was the most expensive and more delicate that the netbook or pda, it stays safely at home.