Amazons Kindle iPhone app is pretty good but needs a dictionary
I've only used it a little, but Amazon's Kindle iPhone app is a much better reading experience than I thought it would be. I'll let you know if I have the same feeling after reading an entire book, but after a few sessions, I'm pleasantly surprised with how little I consciously think about the fact that there are only a few sentences on the screen at one time and how often I have to flip pages.
One of the best User Interface elements of it is the little lock that pops up for a moment when you trun the device from vertical to horizontal or vice versa. Tapping the lock keeps tells the app to keep the display in that perspective. Without this, it would be difficult to read lying down. The app would have a tendency to flip to a vertical display when turn to the side.
One key improvement I'd like to see is a dictionary lookup. In the current version, you can't even copy a word to paste into another app. That makes it a real pain when you come across a tricky word that you are unsure of.
You'll need an Amazon account (and an iPhone or iPod Touch, of course) but the app is worth checking out. There are some titles that are offered for free. So, you can get a feel for the experience with something like Dracula without having to pay a dime.