This was an issue at ALA Midwinter. I saw an interesting mention in the New York Times today.
The article starts out about the Kindle 2, but quickly moves on to two other issues, reading books on mobile phones and then who gets to make money from same -- the device vendors or the publishers. Here are some quotes about the former (links added by me).
"Perhaps most significantly, Amazon said it would start selling e-books that can be read on mobile phones and other devices, although Amazon did not say when it would do so or which devices would be compatible."
"Amazon also announced a new feature, Whispersync, which would allow readers to begin a book on one Kindle and continue, at the same point in the text, on another Kindle or a mobile phone."
"Amazon faces a serious challenge from Google, which has scanned some seven million books, many of them out of print. Google said last week that it would soon sell books from its publishing partners for reading on mobile devices like the iPhone from Apple and phones running Google’s Android operating system."
"Several companies have created e-book programs for Apple’s iPhone and iPod Touch, which have been downloaded more than a million times."
The section ends with this prediction from Jeff Bezos. "Reading on these kinds of gadgets might be fine when waiting in line in the supermarket, but that most people would want a dedicated device with a specialized screen for reading."
I don't think Bezos is right about that, but we shall see.