For those looking for a device strictly for reading, the new Kobo is a nice little option. It's small enough to slip into a pocket, can do more with a PDF than the competition, and at $129, it's $10 cheaper than both the Nook and Kindle WiFi.
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I agree about the drive cooling, but it looks like they solved that pretty well.
http://www.hddfiresafe.com/hard_drive/forced-air-flow-cooling-fan-system.htm
There are some great images here of the actual internal guts of this ioSafe hard drive: http://www.notcot.com/archives/2009/01/iosafe_solo_flo.php