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Short demo of what it will be like reading a book on the iPad:
YouTube - Apple - iPad - How to read a book on a iPad - 2010
I think the only problem with reading on the iPad will be in bright sunlight. As far as the talk about e-ink being so much better in room/office lighting how eye-straining it will be, I don't buy it. I mean I don't see a lot of people leaving office buildings and bumping into walls from the eyestrain of looking at their computer screens for a few hours. I actually think that the most serious problem with reading a computer screen is not the video display brightness but the posture problems causing neck aches -- and the iPad is a nicely holdable tablet like the Kindle so no problem-o there.