I have something called a Cruz Tablet which is a glorified kindle with a color screen. http://www.cruztablet.com/index.php
It costs about the same as a higher-end Kindle, but you can add Nook and other Android Apps to it (Microsoft Office and Facebook are a couple I have added). I bought it over the Kindle because the local library system utilizes the Nook App, so I can download books from the Library for free. I can also download Kindle books (there are tons of free classics on Amazon and Barnes and Noble). You can also type on it as if it's a computer, but I don't think it is as responsive as an iPod. I don't use it for that anyway, as I like a real keyboard. I have also been told you can watch movies on it, but I haven't done that yet.
The pros of the Kindle type devices are that you can carry around the equivalent of about 200 books everywhere you go in one small package (I carry around the Bible, Foreign Language Phrasebooks, Cookbooks and Picture Storybooks for my kids along with about 40 books I will hopefully get around to reading, as I have been on one called The Moonstone for the past 3 weeks). It saves your page so you can come back to it later (in case I am lured away from a tedious chapter of The Moonstone by "The Girl With The Dragon Tattoo"). If you are reading a book which has a sequel, you don't have to go to the bookstore to buy the series and can download and read them all in one sitting. If you are traveling overseas where it is hard to find books in English, you have an endless supply at your fingertips. If you are discussing a subject with someone and want more information, it takes less than 3 minutes to download a book on the subject if you have a wireless connection. It's truly wonderful to have that flexibility!
The cons: You don't dare put it down to save your seat at the airport or leave it lying around anywhere even for a minute (say to pick up your food at an Airport restaurant) for fear of it being stolen. You have to be fairly careful not to put it in a bag that gets knocked around or dropped frequently, as it's fragile. It can be dropped or get wet, thus making it unusable. If you have kids, they follow you around waiting to pounce on your eBook the minute you set it down, thus giving you moments of panic as you envision it being dragged into the bathtub or left outside in the rain by said hooligans. Also, for bestsellers, I've found that downloading the e-book costs about as much as a brand new paperback, and after you've read it you can't just pass it along to a friend. The final thing is that sometimes after you've been carrying it around and reading it for a few days, there might be a great opportunity for a good read but your E-Book will need recharging, which means you have to waste that time searching around for an outlet to plug it into (or if you are in the car, look out the window instead.
Overall, If you can keep track of it and have fairly good luck with electronics (as in no history of losing or breaking them) I think you would enjoy it. I think they make good Christmas Presents for "the spouse who has everything".