Gotta disagree with you. I've read probably 40+ full-length novels on my iPhone. I love it. And I find its HVGA screen better than the 4" VGA screen running Microsoft Reader on my old Toshiba e830 (but that's mostly Reader's fault rather than Toshiba's or any inherent greatness in iPhone's screen).
Also, I'm so over the whole page turning thing. Now all my books are just 1 page long (1 really long page)- and I just finger scroll down it. I find the flow much better than turning electronic pages (such an anachronism as there is no page to turn). (Of course bookmarks and remembering your place are essential as well as a scrubber bar to quickly jump through your book.)
Also think the Kindle is way over priced for a device that does nothing else. I just don't need it. I'd much rather spend that $359 on eBooks or something else. And it's too big to be pocketable and frankly I'd hardly ever have it with me when I wanted to read. Also think it's too big and heavy to use one-handed while lying on your back in bed (where I do a lot of eBook reading). I find the iPhone's battery to last really well as a reader (esp. on a plane when you have all the radios turned off)- heck it lasts really well anyway. I've gotten 2 full-length films + music listening + eBook reading in on long flights on a single charge and still arrived with enough juice to make some calls and check email on arrival. (It's when I'm not on a plane and it's using 3G for voice and push notifications that I find the battery life to be lacking.)
64 GB iPad 2 WiFi, Apple TV 2, 32 GB iPhone 4
Early 2011 MacBook Pro 13" (dual boot with Windows 7), Early 2009 Mac Mini