Well, sorry to go against the grain and all that, knowing how wonderful books are and that, but I'd just lurve one of these things. If I had the money, I'd buy one tomorrow.
A friend of mine bought one of the first RocketBooks, which was a similar device and claimed it saved him a fortune in books.
They might not be popular with the masses, but if what is important in a novel is the text, then it shouldn't matter the format you get it in. With these things you can set the text size. When you turn it off, it rememebers where you were up to. It's a gadget, a gimmick, and it won't change the world and probably won't kill the printed page, but I think it's as cool as any iPod.
Colin M