Amazon Kindle 2
I finally ordered an Amazon Kindle 2, and sweet fancy Moses, I absolutely LOVE it. Reading is extremely comfortable, and the six different font sizes make it easy to dial-in the size that's just right. I also love being able to add annotations, take clippings, and search through my library for that elusive quote I know I read somewhere.
The size is also great, and with the various available covers, it's easy to toss the Kindle into your bag and take it with you everywhere you go.
My only regret is that I waited this long to get one!