Further Sony Reader details
A little further digging reveals the following: More technical details on the Sony Reader.
Basically, the important thing is that the screen is 800x600 SVGA, though monochrome only. I doubt it handles animation at all at this point, or if so, certainly not enough to support your average game experience (maybe chess or something that doesn't require smooth animation). The resolution will be better than a computer screen, unless you've got a BIG screen and can step back from it to read. Though you should be able to read the Sony Reader from any angle (but you will need ambient light for it.)
The resolution isn't has high as I'd hoped, but that also keeps the page sizes managable.
I really want to see one of these things in action. And then I want to find the developer's kit.
And why the heck aren't more people talking about this? I'm not saying that this is the iPod, but it sure beats the hell out of reading comics on the iPod. Or the PSP.