Sony's latest e-reader. the PRS-700, looks good: it features a six-inch touchscreen, allowing you to look up words, tag bookmarks and turn pages with the press of a finger. Built into the sides: a series of LED lights for reading for up to 8 hours in dark environments. It should be available in November for $300.
I like it. The Kindle's EVDO connection is still its killer feature, and every other e-reader out there pales in comparison, no matter how much the Kindle looks like an e-reader glued back together after being hurled violently against a wall. But the touchscreen is certainly a nicer way to interface with a book than clunkily tabbing through words.