Mankind put people on the moon forty years ago yesterday, but we have yet to perfect an ebook reader a decade after the Rocket eBook. Amazon and Sony sell the two most mainstream ebook readers in the U.S., but they're limited to grayscale E Ink despite the existence of color technology. Sixteen shades of grey may be fine for reading the contents of a novel, but (IMHO) there's still value to having a large screen reading device for those times when an iPhone or netbook don't suffice. Personally, it'd be pretty great to have high-res, print size, digital versions of EW, Wired,
The Sony PRS-505 (pictured above) probably offers the best price-to-performance today. It's lightweight, features solid battery life, has expandable storage (SD, FTW!), and the digital content is effectively owned by the user. Unfortunately, there's no Mac software from Sony, no wireless connectivity (i.e. no new articles pushed OTA), and its CPU is slow as molasses. Sony makes a significantly faster PRS-700 model, but its touchscreen degrades its display fidelity. The inclusion of a stylus highlights the fact that its touch UI isn't good enough to stand alone. The PRS-700 also features a really lame LED system that fails to evenly illuminate the display in the dark.
Amazon's Kindle fails miserably at design aesthetic relative to the Sony ebook line, but includes wireless service (for customers in Sprint's coverage area). Alas, Amazon abuses its power, having policed their customers 1984-style on content assumed to be owned by the user which apparently isn't the case. It's disconcerting that the Kindle currently requires a commitment to be beholden to Amazon's proprietary format and its content providers. Ironically, Sony seems to be the more open ebook vendor though the potential for them to abuse their PC sync software exists. Both companies should examine the iTunes Music Store model of DRM-free content delivered in a standards-based format.
Indeed, there's a company in Cupertino with the assets to create an ebook reader that could kickass. Steve Jobs derided the notion when the original Kindle debuted based on his assertion that Americans don't read anymore. If anything, Apple is probably working toward a more universal Tablet PC UMPC non-fugly digital slate. Think MacBook Air display unhinged from its main chassis with something like an OLED multi-touch screen. The user could bring up an on-screen keyboard, but also connect a physical one via Bluetooth or USB. A Mac tablet need only be powerful enough to handle video for Front Row and iChat, VoiceOver text-to-speech, and Safari. Get wireless carriers or even print publishers to subsidize such an Apple device, and prepare for world domination! 
