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 would love to have this machine, and the netbook Dual Core Atom - but $500? That's way to expensive.
You can get a much better bang for your buck with a regular laptop/desktop.
I'd pay $375 at most.