First, I have absolutely zero experience with a Kindle, a Nook, or anything else that isn't an iPad.

Second, get an iPad. You get a book reader built-in, and it does far more than *JUST* let you read books. Sure, it costs more. But it's not that much more money, and it does do that much more stuff. That should justify the cost (if you can afford it in the first place.) I know you're in Oz, so I don't know about the different plans down there, but I have the 3G version because I bought it as a business expense, so I can use it when I'm not at home. If you don't have pretentions of doing that, then the Wifi version should suffice.

(Note: I have the iPad v1, and have not used a v2. The magnetic cover that puts it in hibernate mode looks nice. Not sure how much I'd use FaceTime even if I had it. Still requires Wifi to use FaceTime.)

(Edit, and a further Note: I do not really use the iPad as a reading device. I much prefer the tactile feel of an actual dead tree in my hands for reading. Not a screen.)