I should have posted a much longer question, but was a bit limited for time when I asked. This is a bit of an infodump about my research in the last few weeks.
The iPad.
I really don't need another multi-functional device, which makes the iPad less attractive than it could be. I currently use a small laptop for writing, and my Android phone is at least adequate for music, mobile twitter and the occasional mobile internet lookup (usually just Wikipedia). Besides, I'm wary of buying into the Cult Of Steve Jobs And His Walled Garden. OTOH, I did have a fiddle with a friend's iPad for reading ebooks and was not impressed. The screen is very bright and stark - more so than either of my laptops. It's also the most expensive option.
The Kindle.
Buying from Amazon is a potentially a big advantage with this, but it's a lock-in. Fortunately, there are Ways Around That. I played with another friend's Kindle 2 the other day. I found the screen just a tad small and the refresh speed was just a bit slow, though I could get used to it. I also didn't like the quirky UI, nor was it comfortable to hold to read, which surprised me somewhat.
Now, granted, this was an early Kindle (first international version). Newer ones might feel different. But they still have that rather quirky UI.
The Nook.
If B&N marketed the Nook Color in Australia, it would almost be a done deal. Almost. The choice of LCD over e-ink I would have to try out. It might be the iPad problem again. I am tempted to see if I can buy one off eBay or just punt with their website (it's been done by other Aussies).
One thing about the Nook that is attractive is that it can play Vorbis music files, just like my phone. Whilst I don't intend to use the e-reader for music, I rather like having that seamless option (with the iPad I'd have to rip my CDs again and into iTunes, as well, which I dislike).
Sony e-reader.
This is currently on the top of my list. My Mum has a 350, which is the 5" screen. Considerably faster refresh than the Kindle 2, and a touch screen, which makes the UI quite a bit nicer. But I find the 5" screen a bit small which is the *only* reason I hadn't bought one.
Unfortunately, the larger 650 (6" screen and memory card slots) is *extremely* popular and coupled with a shortage due to the tsunami in Japan, they are very hard to locate.
Other e-ink readers.
Made by other manufacturers trying to jump on the bandwagon, I tried one of them in a local electronics store. :-/ It was almost as much as the Sony, which gives you an insight into how expensive the e-ink screens are - but it was considerably slower, which showed they cut costs by using a slower processor. No sale.
Android tablets.
There is potential here, if the market segment could mature. I had a play with a Motorola Xoom a few weeks ago and really liked it as a technology platform, but didn't like the way Motorola had skinned it. They would have the same advantages of the iPad and the Nook Color all rolled into one. But there's still the LCD vs e-ink issue. And possibly the price.
Android phone.
I currently have one: it's a HTC Hero running Android 1.5. This limits the choice of e-readers, unfortunately, and the only one I've found is called Laputa, which sucks. But what sucks harder is the screen is too small for reading fiction. Ugh. Not even an Android upgrade could fix that.
E-book prices.
I've been doing more writing recently and have also found lots of information about self-publishing e-books. And a lot of information about how the current paper-based publishing system is actually quite broken. The publishing industry, as greedy as ever, seem to have decided they are going to teach the consumers that mass-market paperbacks have always been too cheap and we'd rather you finally paid something closer to the full hardback price, please. This, I'm guessing, is why ebooks are *more* expensive than paperbacks. I've already upset one ebook-selling website when I tweeted about this, but they can't change the price the publisher sets.
Little naive me had been expecting ebooks from established authors were going to be cheaper and that I could buy ebooks of new titles by familiar authors. I can see this is not going to happen quickly. But instead, I can use it to find and read new authors who are *not* signing up to the traditional publishing model.
Wade.